The Malta Independent 19 March 2019, Tuesday

The Malta Stock Exchange launches three bond indices

Saturday, 23 February 2019, 08:41 Last update: about 23 days ago

Minister for Finance Edward Scicluna inaugurated the launch of three bond indices by the Malta Stock Exchange (MSE); the MSE Corporate Bonds Total Return Index, the Malta Government Stocks Total Return Index and the MSE Balanced Bonds Total Return Index.

The Finance Minister explained that these three indices will operate on a ‘total return’ basis and thus introducing the concept of re-investment of returns. This is an important concept as it possesses the same principles of compound interest and would therefore, significantly accelerate portfolio growth.

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The minister also commented on the benefits of having bond indices that cover the local market since they provide local and foreign investors with a better understanding of the local bonds’ performance and enable them to compare returns with other bond indices.

“The launch of these indices together with previous initiatives including, the National Capital Markets Strategic Plan, the Prospects Multilateral Trading Facility (MTF), the Institutional Financial Securities Market as well as the formation of a subsidiary of the MSE – the MSX, are fulfilling the MSE’s overarching goal to develop and modernise the local capital market. This enables the MSE to effectively compete with other European exchanges,” stated the Finance Minister.

During the launch, the Finance Minister also announced that the MSE will be hosting the World Federation of Exchanges’ 37th Annual Clearing and Derivatives Conference for 2020. This high-level conference, which was previously hosted by Frankfurt and Chicago, is expected to bring about delegates from all the World Stock Exchanges to Malta.

 

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