Through its ever-growing commitment to establishing itself as a financial services hub, Malta has indeed developed into an attractive jurisdiction for international business and investment. Malta’s strategic endeavours continue to be highlighted by the launch of the first Maltese Institutional Securities Market by the Malta Stock Exchange (MSE).
What is the IFSM, the Malta Institutional Financial Securities Market?
On the 27th September 2017, the MSE confirmed the receipt of regulatory approval to launch the new Institutional Financial Services Market (IFSM). The IFSM which will be officially launched in October 2017, captures securities falling under the Wholesale Securities Market rules, including asset-backed debt, convertible debt securities and insurance linked notes. The eligibility of investors to purchase the afore-mentioned securities is moreover restricted, with institutional investors being the only type of investors able to purchase such securities. The market’s wholesale characteristic also necessitates a minimum denomination requirement of a €100,000.
Institutional Financial Securities Market - New Opportunities for Key Players
Similar to the already existing Maltese capital markets framework, the IFSM will be under the auspices of the MFSA in its capacity as the Listing Authority. Prospective issuers must, therefore, apply to the MFSA in order to receive listing approval. The Market will also enjoy recognition as an EU regulated Market benefitting from both HMRC recognition and withholding tax exemptions.
Malta Stock Exchange on the launch of the Institutional Financial Securities Market
Being an integral part of the National Capital Markets Strategic plan launched earlier this year, the IFSM, being the first of its kind in Malta, will seek to generate an equal standing and place the MSE at par amidst other competing market players. Mr. Joseph Portelli as Chairman of the MSE envisions a bright future ahead for the MSE, stating that “this market not only complements the other markets operated by the Exchange but also creates new opportunities for the institutional players, issuers and stakeholders who all have an interest in seeing this exciting market develop and grow both locally and internationally.”
