Effective 11 April 2011, the link will connect Malta Stock Exchange (MSE) with Clearstream Banking Frankfurt (CBF), the central securities depository (CSD) for the German domestic market.
Clearstream said through this link, the Maltese securities will be eligible in Cascade, the settlement system of CBF.
Customers of CBF will be able to settle these securities between themselves and hold them in collective safe custody like any other German security.
Maltese securities could also be used for collateral purposes, said Clearstream.
Moreover, they will also be eligible through the international central securities depository (ICSD) Clearstream Banking Luxembourg (CBL) via the settlement link between the ICSD and the CSD, thus allowing wider range of international investors to access the Maltese market.
MSE CEO Eileen Muscat said he believes that the establishment of the link with Clearstream Banking Frankfurt is vital in helping the the local market to develop a truly international presence.
Clearstream provides the post-trade infrastructure for the Eurobond market and services for securities from 51 domestic markets worldwide.
