Institutional Financial Securities Market

Posted by EMD Advocates
6
Dec 22, 2021
153 Views

What is Institutional Financial Securities Market? It is the 3rd market which is established by the Malta Stock Exchange and is basically built for institutional investors. By definition, securities market is a place or platform that issues securities, investors can purchase and transfer among other investors these securities from such market. The minimum currency or denomination on IFSM is 1 lakh euro or equivalent in that specific currency. Among the financial securities available are as follows:

  • Debt securities
  • Asset backed securities
  • Insurance linked notes
  • Convertible debt securities
  • Derivative securities

Institutional Financial Securities Market or IFSM is regulated by MFSA under WSM or Wholesale Securities Market. Follow below steps for registration and approval for trading financial assets under IFSM.

  • A potential investor or trader first needs to appoint a listing agent, who is authorized by Malta Financial Services Authority
  • The agent will further guide about compilation of the application for listing and drafting of the prospectus
  • The application then needs to be submitted to the MFSA for approval
  • The agent additionally will submit an application for being in the list on IFSM
  • Once the application is approved, Malta Stock Exchange will release an official notification stating the admission of investor to listing and trading of financial assets to IFSM

Malta is an island country that has attracted new businesses in various domain owing to the fact that it is well regulated and offers best in class business incentives. EMD Malta offers assistance related to various sectors and also for dealing with financial assets at Institutional Financial Securities Market. It is basically a multi-disciplinary agency based in Malta offering different kinds of corporate services.  Like any other marketplace, for IFSM as well, it is very important for new investors to learn from the scratch and from the best. Hence, approaching a well-known establishment like EMD is a better option. There are many participants in this market including buyers and sellers, so fundamental and technical analysis of the trends is utmost important. As an institution, various components associated with IFSM includes the likes of foreign exchange market, credit market, investment market, stock market, insurance market etc. The ultimate aim of the financial market is to mobilize the funds or capital investment and distribute it in a manner to improve the efficiency. To summarize the major functions of any financial assets market are as follows:

  • Determining the price of the asset
  • Mobilizing the funds
  • Liquidity
  • Sharing the risk and benefit alike
  • Provide way for easy access of assets
  • Lessening the cost of transaction and processing of information
  • Forming a capital fund

For assistance related to financial or corporate related domains, one can reach out to EMD Malta that offers services across the globe in a competitive yet accurate manner.

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