As Malta's liberalisation of stockbroking continues, the Bank of Valletta (BOV) has announced the establishment of a new company to provide stockbroking services to the bank's branch network and customers and to other companies in the BOV Group. The new enterprise, BOV Stockbrokers Limited (BOVSL) was announced by Joseph Zahra, BOV chairman, who also said that an application for a stockbroker's licence had been lodged with the Malta Stock Exchange.
The liberalisation of stockbroking has been the subject of some controversy between the Malta Stock Exchange and stockbrokers who feared that the opening up of this sector was taking place too rapidly. In fact, liberalisation seems to have been subject to quite some delay and the amendments to the Malta Stock Exchange Act are still being discussed in Parliament. The amendments will allow organisations such as banks to own stockbroking companies.
Mr Zahra said that BOV's stockbroking service was much-needed and that the initiative was part of BOV's long-stated intention of providing seamless financial services for Maltese investors. He said: 'The new company will be able to execute orders for the purchase and sale of equities and bonds on the Malta Stock Exchange and on all the major exchanges in the world. Additionally, the BOV, as a fully licensed custodian, will offer custody services with quarterly valuation reports, and at a later date we shall be making available via the Internet daily portfolio valuations for the larger investors.'
BOVSL is expected to commence operations in early 2001 and its services may be accessed not just from its main office but from any of the bank's branches in Malta. Customer orders will be processed on a real-time basis using BOVNet, BOV's electronic communications system. Mr Zahra stated that BOVSL will lead to a more active capital market in Malta and urged other financial institutions to follow suit, saying the development of such stockbroking services was vital if Malta was to possess a transparent, liquid and efficient capital market.
BOV also plans to introduce other initiatives which will be announced in due course; they will include Securities Purchase Agreements.
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