Central Securities Depository

(1)

Responsibilities and Services

(2)

•

Article 24 – Financial Markets Act (Cap.

345 of the Laws of Malta – “FMA")

•

The Central Securities Depository (“CSD”)

is authorised by the Malta Financial

Services Authority to provide the services

of a central securities depository

(3)

•

DEMATERIALISED – the system allows investors to

hold and transfer listed securities without the need for

physical certificates or special transfer forms [Article

28(1) & (2) of the FMA]

•

Each listed security is represented by a computerised

register of accounts which is updated following

(4)

•

Financial instruments maintained by the CSD are

identified by the International Securities

Identification Number (ISIN) – a unique reference

code recognised internationally

•

The ISIN consists of a country code, a financial

instrument’s domestic code number and a check

digit to validate the code

(5)

•

Each individual holder is assigned an MSE

Account Number - a unique identification

number appearing on the registers and

quoted on all official notifications issued by

the CSD

(6)

• Registration Details of holders of financial instruments include:

• Full name and address

• Identity card no. or Passport no.

• Company Registration no.

• MSE Account no.

• Residence or country of incorporation

• Direct credit details

• Withholding tax option

• Mandates

• Usufructuaries

• Indication of primary/secondary holder

(7)

Central Securities Depository

•

FUNCTIONS OF THE CSD:

• I. the provision of custody or depository facilities in respect of financial instruments;

• II. maintenance of the registers of members and holders of financial instruments and recording of transactions and holdings in the registers of financial instruments being maintained at the CSD;

• III. the operation, management and administration of one or more securities clearing and settlement systems;

• IV. the authentication of registers of members or holders of designated financial instruments;

• V. the provision of such other ancillary functions related to the above

(8)

Central Securities Depository

•

I.

The provision of custody or depository

facilities in respect of financial instruments:

•

Safe-keeping of securities

•

Trade execution services

(9)

• II.

Maintenance of the registers of members and holders

of financial instruments and recording of transactions

and holdings in the registers of financial instruments

being maintained at the CSD:

• Transfers

• Transmissions

• Pledges of securities

• Rights of mandates or usufruct

(10)

•

Transfers

Market trades

Off-Exchange trades

Off-market transfers (donations, personal

separations, transmission causa mortis, amalgamation of MSE Accounts; Direct

holding/Indirect holding; Indirect holding/Indirect holding; securities collateral, repurchase or lending; deposit or withdrawal of financial instruments)

(11)

Central Securities Depository

•

Pledges

A certified copy of the signed pledge agreement to be delivered to the CSD by the pledgor or the pledgee;

Notice of termination of the pledge to be delivered to the CSD by the pledgee

Recording of pledges or terminations thereof against the respective financial instruments holders’ accounts.

(12)

Central Securities Depository

•

Mandates/Usufruct

Recording the payment of any dividend or

interest payment due to a holder of financial

instruments to be issued either to a third party

recipient or directly to a bank account

•

Direct credit facilities

Recording registered holders’ bank account

details which are credited with

(13)

Central Securities Depository

•

Miscellaneous

Amendments to Static Details – amendments to name,

surname, address, tax option, direct credit etc.

Categories – each registered holder will be categorised

as a resident/non-resident, minor, employee etc.

Court Orders – garnishee orders, warrants of

prohibitory injunction etc.

(14)

Central Securities Depository

•

Other services provided by the CSD:

•

Corporate Actions

• Dividend/Interest Payments

• Rights/Bonus Issues

• Share split

(15)

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III. the operation, management and administration of

one or more securities clearing and settlement

systems

• Maltaclear – clearing and settlement of transactions in financial instruments traded on the Malta Automated Trading System (“MATS”) as well as those that are not effected on MATS (i.e. OFFEX) but settled through Maltaclear

• DVP – final settlement of financial instruments occurs if the final settlement of funds occurs

(16)

Central Securities Depository

•

IV. the authentication of registers of members or

holders of designated financial instruments

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Registration Advices