Settlement process - Malta
All MaltaClear transactions settle on a rolling settlement cycle of not more than T+2, indicating 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.
- Netting on T+2:
- Malta Government Stocks;
- Corporate Bonds;
- Gross on T+0:
- Treasury Bills.
Malta Stock Exchange plc operates a system (MaltaClear) for the clearing and settlement of transactions in financial instruments admitted to any of its recognised lists, of transactions traded on its electronic trading system, credit operation transactions as well as any other financial instruments transactions as may be agreed to.
MaltaClear allows same-day value payments wherein there is an exchange of cash for listed financial instruments which qualify as credit operations between Participants of MaltaClear and/or of Particpants of MaltaClear and the Central Bank of Malta during the day in real-time on an irrevocable settlement basis as they occur during the day.
Participation in MaltaClear in respect of credit operations shall be limited solely to participants of the TARGET2 and the Central Bank of Malta.
All DVP transactions shall be carried out off-market on a delivery versus payment basis, achieved through the link between MaltaClear and the CSD operated by the Exchange. It is the responsibility of the Exchange as operator of MaltaClear to satisfy the requirement for delivery versus payment through the use of its own settlement account held within MaltaClear and the maintenance of the appropriate link between MaltaClear Financial instruments’ settlement of MaltaClear transactions shall 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.
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.
Holders of financial instruments registered within the CSD are notified of any movement in their holdings by means of a Registration Advice.
Stamp duty is not applicable in the Maltese market.
Penalties are not applicable in the Maltese market.