The Malta Stock Exchange this week announced a joint venture with the Irish Stock Exchange to launch the European Wholesale Securities Market (EWSM), 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.
The Board of Directors is composed of people of international repute in the financial world. Michael Bonello, former Governor of the Central Bank of Malta, is the MSE nominated director on the Board of EWSM. The two directors nominated by Irish Stock Exchange are Padraig O’Connor, chairman of the Irish Stock Exchange, and Fabrice Demaringy, who from 2002 to 2008 was the Secretary General of the Committee of European Securities Regulator, the predecessor of the European Securities and Markets Authority.
Speaking this week, 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 that 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.”
Arthur Galea Salomone, chairman of the Malta Stock Exchange observed: “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. Having the expertise of the Irish Stock Exchange on board was essential to bring this initiative to fruition. By pooling our resources in this manner, EWSM will be in a position to provide a highly professional outfit, a competitive pricing structure and a compelling offering for international customers. As co-promoter of this new market, the Malta Stock Exchange is pleased to have served as a catalyst for yet another important development in the financial services sector.”