The Central Securities Depository (CSD)

All financial instruments traded on the Malta Stock Exchange (MSE) are dematerialised, meaning share and bond registers are held in electronic format and no certificates are issued as confirmation of holdings. All market transactions, off- market transfers and other amendments related to registers of listed companies are reflected in the relevant registers held within the Central Securities Depository (CSD). An investor intending to acquire listed financial instruments traded on, or to hold securities in the custody of the MSE, is assigned a unique Malta Stock Exchange Account Number within the Central Securities Depository.

CSD Services

The depository provides a number of specialised securities administration and related corporate services, such as:

  • New Issues Registration Services: This includes the collection, data input and all other processes related to the applications made by prospective investors in respect to an initial public offering of instruments and assets. Since the CSD will also be acting on the instructions of the issuer in respect to the allocation of investments in the name of investors, the provision of registrar services is a naturally integrated extension of securities issuance services.
  • Securities Administration: The CSD provides a securities holders’ register administration service in respect to issues of dematerialised securities by corporate (private and public companies or corporations) and non-corporate (other entities, unit trusts and mutual schemes) issuers. The service includes the notarial function and the maintenance of records. This service is available to listed and unlisted organisations and includes 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.
  • Clearing and Settlement: Transfer verification of financial instruments or other assets in accordance with due instructions, typically consisting of delivery versus payment (DvP) in respect to the transfer of assets against payment, or free of payment (FoP) in respect to the delivery of assets free of payment. Conventionally, securities settlement on the Maltese regulated market takes place on T+2 (T: the day of transaction) for all financial instruments. Clearing and settlement is performed by MaltaClear, the authorised securities settlement system operated by the MSE and forming part of the operations of the Central Securities  Depository.

Custodial Services

The CSD offers professional, customised and cost- efficient custody and depository services to retail, institutional or sophisticated investors seeking to benefit from MSE’s custodial holding services, clearing and settlement of assets and the effective exercise of rights arising there from on their behalf. Custodial services may extend to securities issued in Malta and overseas. The fund industry is one of Malta’s key growth areas, and the MSE has extended its custodial services by offering cost-effective custody services also to professional investor funds (PIFs).

CSD links with Global Depository

The CSD’s relationship with global depository Clearstream Banking facilitates the participation of MSE customers on international markets and provides international investors easy access to include Malta-issued securities 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 allows investors to benefit from secure and efficient clearing and settlement processing and a host of other security custody services.

Maltese financial instruments issued through the CSD can be deposited, cleared and settled in an international environment, making these financial instruments more liquid, as they may be actively transferred in a secure manner anywhere in the world through Clearstream’s global reach. Investors wishing to invest in foreign securities and assets may do so by transacting or otherwise acquiring title over such securities and assets through authorised  intermediaries or over-the-counter. Instead of maintaining an account directly or indirectly with a foreign depository to record the holding in these investments, the MSE Central Security Depository will hold these investments in custody on behalf of investors through its partnership custodial relationship with Clearstream Banking.

National Numbering Agency

The MSE is Malta’s National Numbering Agency, and issues a unique international securities identification number (ISIN), and maintains updated details, of securities issues in Malta.



 

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