Whether you are a listed or unlisted company, The MSE CSD can provide securities holders' register administration services in a dematerialized environment. These services are available to corporate (e.g., private and public companies or corporations) and non-corporate (e.g. other entities, unit trusts and mutual schemes) issuers. Registered securities administration services include the processing of all corporate actions planned by an issuer, such as the dividend / interest payments processing, power-of-attorney mandates and fixed term securities maturities and redemptions, new issues and rights and bonus issues, regulatory or other ad hoc reporting and updating of registered holdings' details.

Other register related services include:

  • Transfer of Ownership in Off Exchange Transactions
  • Pledge / other collateral entry or release of securities
  • Freeze of Securities after a Court Order or in terms of any other legal restrictions
  • Services to Investors such as: Statement of Account, information for investors' account

Furthermore, the CSD offers professional, customised and cost-efficient services to retail, institutional or sophisticated investors wishing to avail of the MSE's custodial holding services, clearing and settlement of assets and the effective exercise of rights arising therefrom on their behalf. Custodial services may extend to both securities issued in Malta and overseas. Interested investors will typically appoint the MSE as their custodian and legal holder of the custody assets on their behalf and in their beneficial interest. By so doing, custody clients will in practice avail of the extensive coverage and possibility of enhanced liquidity that the MSE may extend to the international markets in respect of the custody assets, subject to the applicable terms and conditions.

The Malta Stock Exchange has a link with Clearstream with a view to linking the Maltese market with the international markets. In a nutshell, the link facilitates the participation of MSE customers on the international markets while affording an easy access to international investors to include securities issued in Malta within their portfolios. MSE customers without a Clearstream or other CSD account abroad may still hold internationally issued securities and assets over a secure and efficient link by appointing the MSE as their custodian. This custodial relationship will allow investors to benefit from secure and efficient clearing and settlement processing and a host of other security custody services.

Additionally, investors interested in primary market subscriptions of dematerialized securities issued in Malta, as well as those wishing to process secondary market transfers, may derive practical benefit from the MSE-Clearstream link. Investors who already hold accounts with Clearstream Banking in Frankfurt or Luxembourg, or any other securities depository linked with Clearstream, do not need to open an account with the MSE Central Securities Depository, but may use their Clearstream or other linked CSD account to connect to the local market through the link set up between Clearstream and the MSE Central Securities Depository.

The advantage of the relationship with an international partner such as Clearstream lies in extending to EU and non EU issuers easier access to the possibility of their equities or commercial paper to be issued and/or listed under the MSE brand, and through EU passporting, simultaneously or subsequently seeking a fast-track admission to trading venues beyond the Maltese shores. In this way, the MSE has a cost-effective proposition and is ideally placed to allow securities issuers to derive at the same time the maximum benefits from a safe and regulated financial services centre with an excellent reputation on one hand and enhanced liquidity of the international markets on the other hand. It also allows investors to obtain easy access to a wide range of eligible foreign assets under the security of the MSE-CSD link to the international markets.

Companies wishing more information in respect of the MSE Central Securities Depository administration and / or custodial services can email the Malta Stock Exchange on borza@borzamalta.com.mt

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.