The operation, management and administration of one or more securities clearing and settlement systems
The Malta Stock Exchange has established and maintains a system - MaltaClear - for the purpose of clearing and settlement of transactions in financial instruments admitted to any of the Exchange’s recognised lists, of transactions traded on the XETRA platform, credit operation transactions as well as any other financial instruments’ transactions as may be specified and agreed to by the Malta Stock Exchange.
Transactions effected on the XETRA platform may be settled through MaltaClear. Clearing and Settlement of any transactions in financial instruments admitted for trading on the Malta Stock Exchange but that are not effected on the XETRA platform may also be settled through MaltaClear if so agreed to by the transacting parties and accepted by the Malta Stock Exchange.
The transfer of ownership of financial instruments settled through MaltaClear takes place in accordance with the provisions of “Transfer of Listed Securities Regulations, 2004” and is complete for all purposes of law upon the payment, in full and final settlement of the consideration where such payment is effected on Settlement Day, through a Payment System approved and authorised by the Central Bank of Malta or by any other Recognised Competent Authority. The Payment Systems approved and authorised by the Central Bank of Malta for the purpose of funds settlement of MaltaClear transactions as well as the procedures for such settlement for each of the said Payment System are as detailed in Part II of Chapter 7 of the Malta Stock Exchange Bye-Laws.
Delivery versus Payment (DVP)
All transfers of securities are effected on a DVP basis where the final settlement of financial instruments occurs if the final settlement of funds occurs.
Financial Instruments’ Settlement
Financial instruments’ settlement of MaltaClear transactions are be effected gross on a trade-by-trade basis on Settlement Day within security accounts held at the Exchange’s CSD or on financial instruments accounts held at other CSDs where specific agreements between the respective CSDs have been entered into.
Funds settlement of MaltaClear transactions and the net amounts arising from these transactions are effected through, and in accordance with the rules, of any authorised Payment System. Immediately following the close of a trading session and upon the submission of the relevant data by MaltaClear Participants, MaltaClear initiates the process of calculation of net payments due or owed on Settlement Day for each Participant, including any applicable compensation for accrued interest, in respect of settlement instructions that match with securities balances within the set time-limit of Trade date (T+0). The net amount is calculated by converting the considerations owed by or owing to each Participant in respect of the settlement instructions entered into the relevant pre-settlement Session into one claim or one obligation resulting from such instructions with the result that only a net payment claim can be demanded or a net payment obligation be owed.
Funds settlement for individual MaltaClear transactions on a gross, trade-for-trade, basis may also be effected through any MaltaClear Payment System, if so agreed to by the transacting parties and accepted by the Malta Stock Exchange. The consideration of such transactions shall be excluded from the calculation of the net amounts as computed above.
All MaltaClear transactions settle on a rolling settlement cycle of not more than (T+2), where “T” is trading day and “2” indicates two normal business days following trading day during which funds settlement can take place, and with shorter settlement periods if so agreed to by the transacting parties and the Operator. The Operator publishes, at least annually, by means of an Exchange Notice, the Settlement Calendar and updates thereof in respect of MaltaClear. MaltaClear operates on all days when the Operator is open for business in terms of the Settlement Calendar.
The entries in the register of holders as held at the CSD will take place on Settlement Day when, upon confirmation from MaltaClear that settlement finality has been achieved, the CSD shall forthwith amend the registers of the financial instruments to reflect the MaltaClear transactions.