Clearstream, the post-trade arm of Deutsche Börse group, and the Malta Stock Exchange have teamed up to offer settlement for Maltese domestic securities.

The two entities will offer settlement in Clearstream via the Maltese central securities depositary for a variety of Maltese securities, including stocks, investment funds and government securities.

This will be done against central bank money. The planned cooperation between Clearstream and MSE is aimed at improving cross-border settlement activity ahead of the implementation of Target2-Securities; the settlement system that the European Central Bank plans to introduce in 2014 for cross-border settlement.

Philip Brown, a member of the executive board at Clearstream said that the planned settlement solution will provide more efficient and flexible access to the growing Maltese market.