Freddie Mac said Wednesday it plans to delist its debt securities, mortgage securities and STACR debt from the Luxembourg and Irish Stock Exchanges, citing the difficulty of complying with European Union regulations designed to prohibit insider trading.
The regulation, which took effect in July, subjects issuers of securities on previously unregulated exchanges across the E.U. to onerous obligations on information disclosure, insider lists and dealings by senior managers in respect of their securities traded on EU trading venues.
Freddie Mac currently has certain of its debt securities and mortgage securities, including notes issued under its "Unlimited Amount Global Debt Facility" and other issuances admitted to trading on the Euro MTF Market of the Luxembourg Stock Exchange, and it also has STACR debt notes admitted to trading on the Global Exchange Market of the Irish Stock Exchange. As a result of these listings, Freddie Mac has become subject to the Market Abuse Regulation that recently went into effect in the European Union.
“Freddie Mac has evaluated its compliance obligations under the Market Abuse Regulation in light of the unique circumstances presented by its status as an entity in conservatorship that is supported by the U.S. Department of the Treasury,” it stated in a press release. “The company believes these circumstances could make ongoing compliance with the Market Abuse Regulation especially burdensome and costly.”
Freddie Mac plans formally to initiate the delisting process with the Luxembourg and Irish Stock Exchanges by the first quarter of 2017. Completion of the process will be subject to action by these exchanges. The company said that clearing and settlement of the relevant securities will not be affected by the delisting.