The MSE: a gateway to regulated markets

Jonathan Pisani | Published on 01 Oct 2012

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The Malta Stock Exchange, a Regulated Market

The Malta Stock Exchange (the ‘MSE’) was established in November 1990 in terms of the Malta Stock Exchange Act as market operator and regulator.  The introduction of the Financial Markets Act in 2002 saw the regulatory function of the market move to the Malta Financial Services Authority (the ‘MFSA’).  The MFSA is the single regulator for financial services in Malta.  In 2007 the MSE restructured as a public limited company, and licensed by the MFSA in terms of the Markets in Financial Instruments Directive, Directive 2004/39/EC, it provides the functions of a regulated market for debt and equity securities and a central securities depositary (CSD).  The MSE has kept abreast with international market developments not simply to remain relevant, but to offer attractive solutions to international businesses.  

Floating on the MSE

An entity which applies for admission to the MSE may choose between either trade its securities on the MSE or trading on an overseas market.  This flexibility allows an entity to enter a European regulated market through Malta, a reputable and cost efficient jurisdiction, but reserve trading of the securities to other markets, such as to the location of its investors.  Neighbouring non-European states can take advantage of this flexibility and use Malta as a platform to Europe.  
 

CSD services by the MSE 

An entity which issues dematerialised shares, whether admitted to the MSE, other regulated market or not listed, may use the CSD services of the MSE in relation to clearing and settlement, custody services and other corporate services.  The MSE has partnered with Clearstream to offer settlement in Clearstream via the CSD of types of securities.  In parallel to Malta’s growing investment fund / hedge fund industry, the MSE has also joined Euroclear’s ‘FundSettle International’ which facilitates the cross-border routing, cash settlement and fund servicing.
 

 



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