"Legal and systematic risks associated with payment and
securities settlement systems have been addressed by the
Central Bank of Malta"
The regulation of derivatives is a part of the Maltese
financial services regulatory framework which is in constant
evolution. An area of particular note is Part B II of the
Maltese Investment Services Rules for Retail Collective
Investment Schemes: Malta-based UCITS Collective Investment
Schemes, which contains key principles related to financial
derivative instruments (FDIs), including transactions intended
for investment and/or efficient portfolio
A Maltese based UCITS scheme may transact in financial
derivative instruments as long as the transaction involves FDIs
of the kind specified in Investment Services Rule 4.1 (vii);
and the transaction in the FDI does not cause the scheme to
diverge from its investment objectives as laid down in the
scheme's constitutional documents and/or offering document.
The scheme may only enter into transactions for...