Malta Stock Exchange
Encyclopedia
The Malta Stock Exchange (Borża ta' Malta in Maltese
) is a small but active stock exchange
based in Malta
's capital, Valletta
. It oversees the trading of a handful of important stocks and is the marketplace for Malta's bond market.
The Exchange began operation in 1992. It has, for the past ten years, been the regulator of the local capital market. During this period the Exchange has sought to perform this duty to the best of its abilities but the time has now come to review the matter. It is becoming increasingly obvious that Malta cannot afford to have a fragmented regulatory regime in the financial sector. One major factor that must be taken into consideration is the conflict that exists between the role of the Exchange as regulator of the Capital Market and the ability to market its services on a purely commercial level. This matter is currently being discussed at the highest level since any changes must require the review of various pieces of legislation and relative approval in the House of Representatives.
The Malta Stock Exchange (MSE) has been boosted by a recent article in The Economist
. Malta's equity index surged by more than 60% in 2005, after a 40% rise in 2004. However, The MSE lists only 13 stocks and a population of just 392,000.
The MSE recently received recognised exchange status from the United Kingdom
, which has sparked interest in listings from foreign and local companies, because of the tax relief that such status offers investors. There are 53 hedge funds listed already.
As for the future? The Economist says "In an era of consolidation, the independence of the MSE (owned by the government) is far from guaranteed. A partial sale or a link with another exchange is an option. OMX
, the Nordic exchange operator that provides the all-electronic MSE's technology, is one potential partner."
Maltese language
Maltese is the national language of Malta, and a co-official language of the country alongside English,while also serving as an official language of the European Union, the only Semitic language so distinguished. Maltese is descended from Siculo-Arabic...
) is a small but active stock exchange
Stock exchange
A stock exchange is an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and...
based in Malta
Malta
Malta , officially known as the Republic of Malta , is a Southern European country consisting of an archipelago situated in the centre of the Mediterranean, south of Sicily, east of Tunisia and north of Libya, with Gibraltar to the west and Alexandria to the east.Malta covers just over in...
's capital, Valletta
Valletta
Valletta is the capital of Malta, colloquially known as Il-Belt in Maltese. It is located in the central-eastern portion of the island of Malta, and the historical city has a population of 6,098. The name "Valletta" is traditionally reserved for the historic walled citadel that serves as Malta's...
. It oversees the trading of a handful of important stocks and is the marketplace for Malta's bond market.
The Exchange began operation in 1992. It has, for the past ten years, been the regulator of the local capital market. During this period the Exchange has sought to perform this duty to the best of its abilities but the time has now come to review the matter. It is becoming increasingly obvious that Malta cannot afford to have a fragmented regulatory regime in the financial sector. One major factor that must be taken into consideration is the conflict that exists between the role of the Exchange as regulator of the Capital Market and the ability to market its services on a purely commercial level. This matter is currently being discussed at the highest level since any changes must require the review of various pieces of legislation and relative approval in the House of Representatives.
The Malta Stock Exchange (MSE) has been boosted by a recent article in The Economist
The Economist
The Economist is an English-language weekly news and international affairs publication owned by The Economist Newspaper Ltd. and edited in offices in the City of Westminster, London, England. Continuous publication began under founder James Wilson in September 1843...
. Malta's equity index surged by more than 60% in 2005, after a 40% rise in 2004. However, The MSE lists only 13 stocks and a population of just 392,000.
The MSE recently received recognised exchange status from the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, which has sparked interest in listings from foreign and local companies, because of the tax relief that such status offers investors. There are 53 hedge funds listed already.
As for the future? The Economist says "In an era of consolidation, the independence of the MSE (owned by the government) is far from guaranteed. A partial sale or a link with another exchange is an option. OMX
OMX
OMX AB is a Swedish-Finnish financial services company, formed in 2003 through a merger between OM AB and HEX plc and is now a part of the NASDAQ OMX Group since February 2008.It has two divisions, OMX Exchanges, which operates eight stock exchanges mainly in the Nordic and Baltic...
, the Nordic exchange operator that provides the all-electronic MSE's technology, is one potential partner."