A strategy on the way forward for the Malta Stock Exchange, which could include its possible privatisation, should be in place by the end of January, MSE chairman Joe Zammit Tabona told The Times Business.
During his budget speech last Monday Finance Minister Tonio Fenech announced that the government was seeking a strategic partner for the Malta Stock Exchange.
Asked whether a timeframe existed for the future direction of the stock exchange, Mr Zammit Tabona said: "As fast as possible. By the end of January we will have a strategy in place. Then it will be up to the government to take the decision that it is after."
Mr Zammit Tabona said he has been pushing for the Malta Stock Exchange to be privatised because he believes it will be beneficial for the county to be associated with an international name.
"The financial services industry will be greatly helped. What is happening at the moment is that there certain funds registering in Malta and seeking an overseas listing. I think that if we are able to get a name of international repute only it will be beneficial to the capital markets and we can get foreign companies to be listed in Malta," he said.
"So far we have only two foreign-owned companies that are listed on the MSE, Crimson Wing and 6pm. These are both UK companies but there is a Malta connection because they both have operations here."
Mr Zammit Tabona said that from Mr Fenech's budget speech it is clear that the Stock Exchange is going into a first phase where it will try to develop a strategy for the future.
"A strategy will be developed where the exchange fits, a strategy for the way forward for the future, which can be either a takeover, a partnership or some sort of association. The government has not yet decided which option to turn to but the possibility of seeking a venture with some other institution will be beneficial to the country.
"A lot will depend on whom we identify as a strategic partner. At the moment there are two companies registered in Malta which are seeking a dual listing abroad, one in London and the other in Dubai. If we find a particular strategic partner, then depending on the negotiations that take place, we could get dual listings for all our companies listed here," Mr Zammit Tabona said.
"We are trying to create the right channels to encourage foreigners to actually invest in the Malta Stock Exchange," he added.
Mr Zammit Tabona explained that six months after he was appointed chairman of the MSE a document was prepared for the Ministry of Finance recommending that the Malta Stock Exchange be privatised.
"It has been a long process. We did get Cabinet approval in December 2006.
"It then took us 10 more months to transfer the exchange from an institution that was governed by the Financial Markets Act to a group structure governed by the Companies Act," he said.
Contacted by The Times Business, Mr Fenech said the government was studying all its options for the future direction of the Stock Exchange but he did say that one of the main goals was to enable companies to have "double listings" which would allow them to list on another stock exchange.
A number of stockbrokers who spoke to The Times Business expressed their support for a strategic partner for the Malta Stock Exchange. A founding member of the Malta Stock Exchange said: "Double listings would greatly help us and open up new markets. Weekly trading on the Malta Stock Exchange has not been high and such a development could boost trading."
Another stockbroker said that the MSE's privatisation or association with a strategic partner would put Malta on the world financial map and boost its image.
According to sources the Irish and Milan stock exchanges have in the past expressed their interest in entering into some sort of partnership with the Malta Stock Exchange.
During his budget speech last Monday Finance Minister Tonio Fenech announced that the government was seeking a strategic partner for the Malta Stock Exchange.
Asked whether a timeframe existed for the future direction of the stock exchange, Mr Zammit Tabona said: "As fast as possible. By the end of January we will have a strategy in place. Then it will be up to the government to take the decision that it is after."
Mr Zammit Tabona said he has been pushing for the Malta Stock Exchange to be privatised because he believes it will be beneficial for the county to be associated with an international name.
"The financial services industry will be greatly helped. What is happening at the moment is that there certain funds registering in Malta and seeking an overseas listing. I think that if we are able to get a name of international repute only it will be beneficial to the capital markets and we can get foreign companies to be listed in Malta," he said.
"So far we have only two foreign-owned companies that are listed on the MSE, Crimson Wing and 6pm. These are both UK companies but there is a Malta connection because they both have operations here."
Mr Zammit Tabona said that from Mr Fenech's budget speech it is clear that the Stock Exchange is going into a first phase where it will try to develop a strategy for the future.
"A strategy will be developed where the exchange fits, a strategy for the way forward for the future, which can be either a takeover, a partnership or some sort of association. The government has not yet decided which option to turn to but the possibility of seeking a venture with some other institution will be beneficial to the country.
"A lot will depend on whom we identify as a strategic partner. At the moment there are two companies registered in Malta which are seeking a dual listing abroad, one in London and the other in Dubai. If we find a particular strategic partner, then depending on the negotiations that take place, we could get dual listings for all our companies listed here," Mr Zammit Tabona said.
"We are trying to create the right channels to encourage foreigners to actually invest in the Malta Stock Exchange," he added.
Mr Zammit Tabona explained that six months after he was appointed chairman of the MSE a document was prepared for the Ministry of Finance recommending that the Malta Stock Exchange be privatised.
"It has been a long process. We did get Cabinet approval in December 2006.
"It then took us 10 more months to transfer the exchange from an institution that was governed by the Financial Markets Act to a group structure governed by the Companies Act," he said.
Contacted by The Times Business, Mr Fenech said the government was studying all its options for the future direction of the Stock Exchange but he did say that one of the main goals was to enable companies to have "double listings" which would allow them to list on another stock exchange.
A number of stockbrokers who spoke to The Times Business expressed their support for a strategic partner for the Malta Stock Exchange. A founding member of the Malta Stock Exchange said: "Double listings would greatly help us and open up new markets. Weekly trading on the Malta Stock Exchange has not been high and such a development could boost trading."
Another stockbroker said that the MSE's privatisation or association with a strategic partner would put Malta on the world financial map and boost its image.
According to sources the Irish and Milan stock exchanges have in the past expressed their interest in entering into some sort of partnership with the Malta Stock Exchange.