Pursuant to Article 24 of the Financial Marketst Act (Cap. 345 of the Laws of Malta)[hereinafter referred to as "the Act"] the Exchange holds an authorisation from the Competent Authority to provide the services of a central securities depository (CSD).
Functions of the CSD
In terms of law, the CSD is authorised to perform the following functions:
- The provision of custody or depository facilities in respect of financial instruments.
- Maintenance of the registers of members and holders of financial instruments.
- Recording of transactions and holdings in the registers of financial instruments being maintained at the CSD.
- The operation, management and administration of one or more securities clearing and settlement systems in accordance with the rules and procedures as laid down in Chapter 7 of the MSE Bye-laws, including the provision as required of access and interoperable links between such system/s and other securities clearing and settlement systems, central securities depositories, central counterparties, clearing houses and any other services ancillary to the above.
- The authentication of registers of members or holders of designated financial instruments or of any extract thereof.
- The provision of such other ancillary or consequential functions related to the above including any preparatory and related corporate administrative services in relation to financial instruments which are listed as may be established by the Financial Market Rules.
Maintenance of Registers
The CSD is responsible to continue to update registers with all the details relative to the transfers, transmissions, pledges of and rights of mandates or of usufruct on the financial instruments for as long as the registers are maintained by the CSD. The CSD may also provide the services provided in terms of the Act and any regulations issued thereunder.
For as long as a register of financial instruments is maintained by the CSD, this shall be identified by the name of the financial instrument as set out in the Prospectus or equivalent offering document and by the International Securities Identification number (ISIN), a unique reference code which is recognised internationally. The ISIN Number consists of a country code, a financial instrument’s domestic code number and a check digit to validate the code.
The CSD registers individual holders in accordance with the written instructions received directly from the holder, the Issuer or any other person appointed by the holder to act on his behalf, as the case may be.
MSE Account No.
Each individual holder is assigned an MSE Account Number appearing on the registers held and maintained by the CSD.
The MSE Account Number is the unique identification number of each individual holder appearing on the registers held and maintained by the CSD and will be quoted on all official notifications issued by the CSD.
The registration details of holders of financial instruments whose registers are maintained by the CSD shall include the following information as applicable:
- Full name and address
- Identity Card No. or Passport No.
- Company Registration No.
- MSE Account No.
- Residence or country of incorporation
- Direct credit details
- Withholding tax option
- Indication of Primary/Secondary Holder
- Any other details as may be required by the CSD for the proper maintenance of the account and the register.