The newly-established European Wholesale Securities Market will create broader opportunities within the services sector, enhancing the development of Malta as an international financial services centre of repute, according to Malta Stock Exchange chairman Arthur Galea Salomone.
The European Wholesale Securities Market (EWSM), formally launched on Tuesday, is a joint venture between the Malta Stock Exchange and the Irish Stock Exchange
Dr Galea Salomone told The Times Business: “EWSM is neither an Irish market nor a Maltese market. It is an international market aimed at a global client base. We believe that its establishment in Malta will not only be beneficial to the Exchange but it will create broader opportunities within the services sector, enhancing the development of Malta as an international financial services centre of repute.”
“The international financial services industry is of course very competitive but the European Wholesale Securities Market is an example of cross-border co-operation that makes good use of the EU’s single market for financial services and makes commercial sense for both partners.”
He said the Irish Stock Exchange’s knowledge and expertise were “invaluable” in bringing the European Wholesale Securities Market to fruition.
“Throughout the last months, there has been very intensive collaboration with our colleagues at the Irish Stock Exchange in the planning and delivery of this new market. We’re very pleased to team up with the Irish Stock Exchange for this joint venture. This partnership complements the MSE’s domestic business in Malta and helps us diversify our business, generate new income streams and grow our business to the benefit of both joint venture partners. We would be very happy to explore additional avenues of co-operation but right now our focus is to create a successful European Wholesale Securities Market via this joint venture,” he said.
The European Wholesale Securities Market (EWSM) is a specialist new market for wholesale fixed-income debt securities. EWSM is an EU regulated market, established and authorised by the Malta Financial Services Authority. The Malta Stock Exchange has a 20 per cent stake in the newly formed company, besides acting as market operator and provider of secondary market services to EWSM. The Irish Stock Exchange, which has an 80 per cent stake in the company, will act as the market promoter besides providing primary market infrastructure and other corporate services to the EWSM.
Deirdre Somers, chief executive of the Irish Stock Exchange, said the new market reflects an opportunity for the ISE to further expand its business internationally in one of its key product lines: “The Irish Stock Exchange is the leading exchange in Europe for listing structured debt products and we’ve been exploring ways to expand and diversify our activities in this area for some time. This European Wholesale Securities Market creates an additional market choice for debt issuers which we believe is timely and attractive. It also allows the ISE to extend its geographic reach and to build on our established reputation in market and listing support services.”
Ms Somers said the Malta Stock Exchange was an ideal partner for the joint venture: “We’ve had a close working relationship with the Malta Stock Exchange for many years. It is an established and experienced market operator and we’re delighted to have the opportunity to work with it to deliver an attractive new market proposition.”
MFSA chairman Joseph Bannister said: “This is a positive step for both Malta and the MSE. It is a clear sign that the finance centre is becoming more and more an international centre.”