HM Revenue & Customs has announced that it formally recognises as a stock exchange a new joint-venture listing entity unveiled last year by Ireland and Malta.
In a statement on its website, HMRC said that with effect from 18 January 2013, the new European Wholesale Securities Market (“EWSM”) meets the Revenue’s interpretation of “listed”, and will also be regarded “as a recognised stock exchange for inheritance tax purposes”. The EWSM is an EU regulated market, established and authorised by the Malta Financial Services Authority.
The Malta Stock Exchange has a 20% stake, besides acting as market operator and provider of secondary market services to EWSM. The Irish Stock Exchange, which has an 80% stake, is acting as the market promoter besides providing primary market infrastructure and other corporate services to the EWSM.
The EWSM was created to handle so-called “complex debt listings” by offering issuers and arrangers of wholesale fixed-income debt securities “access to an EU-regulated market…supported by the expertise of a dedicated listing agency service”.The EWSM is described as having been designed to complement the products currently available to investors from both exchanges.
In addition to creating a new venue for trading products normally exchanged in one-to-one over the counter transactions, the EWSM is seen as potentially bringing new customers to investment specialities that are well established in one of the jurisdictions but not in the other. Malta and Ireland, which share the distinction of being English-speaking EU jurisdictions, have a history of collaborating on regulatory matters – for example, when Maltese fund managers seek to use administrators based in Ireland, which is a larger and longer-established financial centre.
Should you wish to familiarise yourself with the Listing Rules for the EWSM please click here.