The Central Bank of Malta (the Bank) is responsible for the regulation and oversight of domestic securities settlement systems. The following are the securities settlement systems currently authorised by the Bank:-

MaltaClear

The MaltaClear system is operated by the Malta Stock Exchange plc and is designated a systemically important payment and/or securities settlement system by the Central Bank of Malta in terms of Directive No. 2: Payments and Security Settlement Systems transposing EC Directive 98/26 on settlement finality in payment and securities settlement systems.

MaltaClear was set up in 2006 and approved as an authorised Securities Settlement System in terms of article 34 of the Central Bank of Malta Act. The rules of MaltaClear are incorporated under Chapter 7 of the Bye-laws of the Malta Stock Exchange plc and provide for settlement on a delivery-versus-payment (DVP) basis in respect of all securities traded on the Exchange.

The system provides for a settlement cycle of not more than three working days on a netting basis, but also allows for the possibility of gross settlement. As settlement takes place on a DVP basis, the registration of securities in the name of a buyer only occurs upon the confirmation of receipt of payment, in accordance with the rules of the system and with the provisions of the Transfer of Listed Securities Regulations issued under the Financial Markets Act (Cap. 345).


TBClear

TBClear, which was set up during 2007, is operated by the Malta Stock Exchange plc, and has been set up to settle funds for individual MaltaClear transactions in Treasury Bills on a gross, trade-for-trade basis.

The settlement cycle of TBClear is T+0, where trading and settlement day are the same. All transactions which are settled through TBClear will be settled on a DVP basis, where final settlement occurs if final settlement of funds occurs. The rules of TBClear are incorporated under Chapter 6 of the Bye-laws of the Malta Stock Exchange plc.