Luxembourg, centre of the €5 trillion ($6.5 trillion) Eurobond market, has launched an alternative market for listing bonds in an attempt to prevent business moving to Switzerland or other financial centres when a new European law comes into force in July.

The Luxembourg Stock Exchange, which lists securities from more than 4,100 issuers from more than 100 countries, is concerned that the European prospectus directive will place a heavy burden on issuers from outside the European Union and will prompt them to take their business elsewhere.