9th October 2009

The FTSE Group, a British provider of stock market indices, has announced that Malta will be promoted to a "Frontier" classification in its Global Equity Index Series as from September next year.

FTSE classifies its equity markets as "Developed", "Advanced", "Emerging", "Secondary Emerging" or "Frontier. This will increase Malta's exposure considerably and hopefully create a wider interest in shares and bonds listed in Malta.

Global equity market structures evolve on ongoing basis, and to keep pace, FTSE works closely with stock exchanges and regulators throughout the year to ensure its benchmarks remain an up-to-date and accurate reflection of the investment opportunity in global markets.

The FTSE Group had, last year, placed the Maltese equity market on its "Watch List" in its country classification and Malta's soon to be inclusion in the "Frontier" list means it has met the necessary criteria required for membership of this group. 

The specific five criteria are:

• The stock market regulatory authorities actively monitor the market;
• There are no objections or significant restrictions or penalties applied on the repatriation of capital;
• A rare incidence of failed trades in settlement;
• A T +7 or shorter settlement system;
• Visibility and a timely trade reporting process.

The change in classification for Malta from a non-entity to "Frontier" will further enhance Malta's potential as a financial services centre.