Malta Stock Exchange Advances Idea Of Regional Bourse

by Robert Lee, Tax-News.com, London

01 January 2004

The Maltese Stock Exchange could soon form part of a wider regional stock exchange to be called BorzaMed which will consist of bourses located around the Mediterranean rim who will share a common trading platform.

“In the present environment of increasing globalisation, we believe that no Exchange, especially small, developing Exchanges, can continue to exist and operate alone if they wish to continue to develop further,” comments MSE Chairman Alfred Mallia.

“The Malta Stock Exchange has, therefore, looked beyond its shores and devised the BorzaMed Project, which proposes a common trading platform, based on mutual recognition of the rules and regulations of the home jurisdictions, between countries in the Mediterranean Rim,” he said.

The idea is to be discussed at a conference to be held on the island on February 13th 2004 which is to be attended by representatives from the most important stock exchanges in the region. “We have also secured the services of very influential speakers and we are looking forward to what promises to be a very important event," Mr Mallia adds.

Meanwhile, after a year of steady growth in the stock price index, the chairman described the MSE as a much more “mature” market in an interview with the Times of Malta. However, the chairman lamented the exchange’s continued untapped potential as a springboard for small firms and startups to launch from.

"In a climate where everybody is speaking about the need for investment promotion and job creation, the exchange can provide opportunities which are not being suitably utilised," Mallia told the Times. “Clearly, therefore, a culture change is needed for more people in the private sector to realise the advantages of issuing equity over bank borrowing or bond issues," he argued.

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