WHY LIST ON THE MALTA STOCK EXCHANGE? More than just a cost-effective solution … An EU jurisdiction coupled A professional environment backed Cost-effective access with Passportability by cost-effective support services to capital markets The MSE has extensive experience with The Malta Stock Exchange (MSE) is There are many reasons why companies listing various categories of financial located in a well-regulated, cost-effective may seek a listing on the MSE, such as instruments such as equities, bonds, domicile which is a fast-developing seeking access to capital markets as a money market funds, property funds financial centre with an excellent source of finance or to raise new equity and venture capital or development reputation, skilled English-speaking capital. A listing may also help raise an funds. Moreover, the Maltese financial professionals and a pleasant working entity’s brand profile or address succession services sector is supported by numerous environment. The MSE is itself an planning issues. authorised organisation that has been experienced professionals who are able to provide cost-effective expertise in legal, operating to the highest international The fees applicable to companies seeking audit, accounting and brokerage services. standards for almost 25 years. admission to listing on the Main Market are very competitive and cost-effective. All the global accounting and audit firms Companies admitted to listing on the Indeed the Exchange’s fee structure is one are represented in Malta and operate MSE’s Main Market and the secondary of Europe’s most affordable. They are also together with many other accounting listing board, the Alternative Companies very straightforward and easy to establish firms, all of which provide premium List, which are both regulated markets, since they are structured on an ‘annual services at significantly competitive are listed in accordance with the fee’ basis, without any up-front charges rates when compared to many other Prospectus Directive. These, therefore, or other add-ons. Unlike many other EU jurisdictions. There are also a large benefit from full passporting rights within exchanges, the MSE does not charge an number of law firms with highly trained the EU as well as having the option to admission fee in respect of its Main Market. multi-lingual lawyers with expertise in have their instruments traded on any The Central Securities Depository (CSD) domestic and international law, servicing EU market of their choice, including also charges minimal fees when compared international companies, private the MSE’s own trading platform. to other European CSDs. Trading fees are individuals and family businesses. It is also quite low. fair to say that such support services are priced at up to 40% less than EU counterparts, while offering the same high level of professionalism that the market expects. A single regulator for all financial services The Malta Financial Services Authority (MFSA) is the single regulator for all regulated financial services in Malta. The MFSA ensures best practice standards Various admission to listing options available and compliance with relevant rules and regulations as well as ensures streamlined There are three markets that an issuer Prospects addresses the specific needs procedures and reduced bureaucracy. may opt to use when accessing the of SMEs, not only by providing a vehicle Capital Market. The Main Market and for small IPOs but also by creating a The MFSA also acts as the Listing Authority the Alternative Companies List (ACL) framework for succession planning for which approves admissibility to listing on are regulated by the MFSA and require these companies. regulated markets. Besides co-operating a sponsor and a prospectus and must with other EU regulators, the MFSA has adhere to the criteria laid down in the Prospects Rules have been designed also entered into a number of Memoranda Prospectus Directive. Prospects, on to be a lighter regulatory regime of Understanding with other non-EU the other hand, is an SME-oriented when compared to the Main Market jurisdictions which facilitate cross-border market which has the structure of an or ACL requirements. It is very cost- business and supervision. Furthermore, MTF operated and regulated by the MSE. effective while providing robust investor the MFSA is a Member of the International Admission to this market is disclosure- protection and transparency through the Organisation of Securities Commissions based rather than criteria-based as is the appointment of a Corporate Advisor. (IOSCO) and the International Association case for listing on the other two boards. of Insurance Supervisors (IAIS). A full value-chain Exchange Highly networked infrastructure – Multi-currency option Xetra, Clearstream bilateral link, The MSE, which also operates a CSD, uses SWIFT and TARGET2 While Malta’s official currency is the state-of-the-art trading and depository Euro, the MSE’s admission to listing, technology. Situated in the heart of Malta’s Trading on the MSE takes place through trading and settlement processes can capital city, Valletta, it is able to provide a Xetra, the trading system operated by accommodate multi-currency issues full value-chain of services from IPO right Deutsche Börse AG which offers trading on all the markets it operates and can, through to registration of securities in book- functionality in line with international therefore, support companies seeking to entry form within its depository. At the same standards, MiFID compliant reporting and raise finance in non-Euro denominated time, participants in the capital market may also facilitates international participation. currencies, such as Pound Sterling or choose which services are appropriate to Xetra is the largest exchange network US Dollar – other currencies can be their needs through the MSE’s user-friendly in the world, currently connecting over supported by prior agreement. and flexible rules and processes. 4,000 traders from 16 European countries as well as Hong Kong and the United CSD services are currently being offered Arab Emirates, amongst others. to both listed and non-listed companies in a dematerialized environment, with The MSE offers custody services through full access to corporate action, notarial, its link with Clearstream Banking AG. custody and administrative services as The link to Clearstream facilitates access well as benefitting from the possibility to the MSE depository for international of settling transactions and corporate investors seeking to invest in instruments actions through the MSE-CSD’s link with listed in Malta. Clearstream Banking AG, one of the largest global ICSDs. Through its connectivity to the SWIFT A personalised service, every telecommunication platform, the MSE step of the way As the appointed National Numbering provides Members and participants Agency for the Maltese jurisdiction, with a full service for the exchange of The Malta Stock Exchange offers a the Exchange is responsible for issuing standardized financial messages for comprehensive spectrum of services. International Securities Identification payments and securities settlement. Numbers (ISINs) for Malta registered It has built an excellent reputation that it strives to safeguard. There is also financial instruments. In this capacity, The Exchange is also a direct member significant potential for growth. Malta Stock Exchange plc is a member of of TARGET2, the interbank payment the Association of National Numbering system for the real-time processing of Like Malta itself, the MSE is agile, pro- Agencies (ANNA). cross-border transfers throughout the active and flexible in its approach. It is EU. TARGET2 offers a premium payment also business-friendly and keen to build service across national borders in the domestic and cross-border relationships European Union, thus enabling the MSE in a transparent and professional manner. to clear and settle Euro transactions in Supported by a pro-business Competent a safe and secure manner. Authority and other stakeholders, the MSE’s executive management team is easily accessible and open to exploring opportunities that offer good quality prospects for new business. This efficient process thrives on a ‘can do’ attitude that cascades from the very top. A company seeking admission to listing Target2 Securities (T2S) enabled on the Main Market, ACL or Prospects post-trading infrastructure will discover that the MSE is a willing and like-minded business partner, not The MSE-CSD was one of the first only before the IPO and admission to participants of T2S, a pan-European listing, or after the offer is concluded, but settlement platform developed and throughout its life as a listed entity. operated by the ECB. Once all the migration waves are rolled out, it will encompass all Euro settlement volumes in a seamless and cost-effective manner, and will be fundamental in creating a truly single capital market in Europe. To learn more about the MSE’s products and services, please contact the Head of Business Development on [email protected] Malta Stock Exchange plc, Garrison Chapel, Castille Place, Valletta VLT 1063. Tel: + 35621244051 E-mail: [email protected] Website: www.borzamalta.com.mt.