The Off-Exchange Trading Regulations came into force on January 27 2006. With the market capitalization of the Malta Stock Exchange (MSE) topping $1 billion and a constant increase in turnover, off-exchange trading means more flexibility for authorized intermediaries and investors.
For listed securities to be traded outside the MSE, a number of conditions must be met:
- they must be executed through an authorized intermediary, who must pre-validate the trade by confirming that the seller holds the securities to be traded;
- the authorized intermediary must obtain the client's express prior written consent for each transaction and, if consent is given orally, a suitable record of it must be kept; and
- the transaction must be reported to the MSE within ten minutes or, if concluded outside trading hours, before its next trading session opens.
The MSE and the Malta Financial Services Authority have set up the technical infrastructure required to allow authorized intermediaries to satisfy their pre-validation and reporting obligations in terms of the Regulations.
Dr Frank Chetcuti Dimech