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Malta Stock Exchange announces launch of the Institutional Financial Securities Market (IFSM)

During a half-day seminar  organized by the Malta Stock Exchange (MSE) on the 18 October 2017, the MSE officially announced that it had obtained regulatory approval to set up a new wholesale securities market which shall operate under the name of Institutional Financial Securities Market (IFSM). The IFSM offers increased flexibility to meet the issuers’ needs and allows the creation and listing of a securitized instruments built around the issuer’s own corporate requirements and the investor group’s specifications.

The IFSM will be open to issuers seeking to issue securities covered under the Wholesale Securities Market Rules (i.e. Asset-backed securities, debt securities, insurance-linked notes, convertible debt securities, and derivative securities) and targeting institutional investors. Accordingly the denominations per unit of such instruments must be of not less than €100,000 (or its equivalent in the case of securities denominated in a currency other than the Euro). Securities listed on the IFSM will also be eligible for trading on the MSE’s trading platform which works under a structure which is regulated by minimum information requirements that are less onerous than those applicable to retail investors. The Market is recognized as an EU regulated Market and as such, is tax neutral.

Competent Authority

The Competent Authority for the IFSM is the Listing Authority with the monitoring of the issuers’ continuing obligations entrusted upon the WSM Listing Committee.

Listing Agents

The listing agent, appointed by the issuer and approved by the Listing Authority in terms of the WSM Listing Rules, is tasked with the submission of the application for admissibility to listing and admission to the IFSM.

The MSE stated that the approval of the IFSM is aimed at placing the Malta Stock Exchange on an equal footing with other international players in terms of competing for international business and in itself is an initiative forming part of the National Capital Markets Strategic Plan which was launched earlier this year.

Jean Farrugia, Partner in charge of the capital markets practice at DF Advocates - Malta commented that “After the success registered by the Malta Stock Exchange following the setting up of Prospects MTF, the SME focused market, which in a couple of months from its launch has already attracted an interesting number of issuers, both local and foreign, this is another welcome development for the local capital markets industry and puts Malta on the international map especially for issuers who are seeking to go public and list on a European wholesale market”.

For further details on the IFSM or other capital markets related enquiries please contact us on info@dfadvocates.com or telephone +356 21313930/ 21340401.