Malta Stock Exchange

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The Malta Stock Exchange (Borza 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.

It began operation in 1992.

The Exchange 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.^[1] However, The MSE lists only 13 stocks and a population of just 392,000.

The MSE recently received recognised exchange status form the Inland Revenue in 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."