Welcome to the monthly capital markets update, a briefing from our capital markets practice area rounding up the month’s regulatory developments within the equity and debt capital markets and looking ahead to future developments.
Malta Update
UPDATE NUMBER 07/2025/01
The MFSA has launched a public consultation on proposed changes to the Capital Markets Rules to introduce a regulatory framework for sukuk, which are Shariah-compliant financial instruments. This move is part of the MFSA’s strategy to encourage innovation and diversity in Malta’s capital markets.
The proposed amendments aim to facilitate the issuance of sukuk on the Institutional Financial Securities Market (IFSM) and are open for stakeholder feedback. By doing so, the MFSA intends to attract new investment, enhance Malta’s global competitiveness, and create a more inclusive and adaptable financial ecosystem.
UPDATE NUMBER 07/2025/02
As part of its ongoing regulatory oversight, the MFSA has issued a circular addressed to listed companies following a thematic review into the quality and transparency of company announcements.
One of the main findings highlighted concerns around the timeliness of announcements, particularly regarding the approval of financial reports. Issuers are reminded of their obligations under CMR 5.16.3 and are encouraged to publish financial calendars at the start of the financial year and to notify the market promptly once meeting dates are confirmed.
The review also examined the volume and consistency of disclosures. The overall frequency has not increased in line with the growth in listed companies. The MFSA is urging issuers to adopt a more proactive disclosure strategy, recommending regular updates on operational performance, unaudited financial highlights (clearly labelled), ESG initiatives, market developments, and financing arrangements.
From a formatting perspective, the MFSA identified issues with accessibility. Scanned formats of announcements or financial reports are discouraged, as they are not digitally compliant and limit usability. Issuers are advised to ensure all disclosures are machine-readable and accessible.
Additionally, the review found that some issuers failed to attach interim financial statements or related documents such as financial analysis summaries and guarantors’ financials to their announcements. The MFSA expects these to be embedded directly within the relevant announcements for ease of access.
Finally, many equity issuers did not publish any information on the director nomination process, which is seen as a missed opportunity to promote shareholder engagement and transparency.
The MFSA encourages all issuers to consider these findings and enhance their communication strategies accordingly to strengthen transparency, maintain investor confidence, and support good market practice.
European Union Update
UPDATE NUMBER 07/2025/03
The European Securities and Markets Authority (ESMA) has selected Ediphy (fairCT) as the first Consolidated Tape Provider (CTP) for bonds in the EU. This marks a major step in enhancing market transparency and advancing the Savings and Investment Union (SIU) and EU capital markets.
A CTP is responsible for collecting (from trading venues and approved publication arrangements) market data about financial instruments and for consolidating such data per financial instrument into a continuous electronic live stream made available to the public.
Ediphy was chosen after a six-month evaluation under the Markets in Financial Instruments Regulation (MiFIR) and received the highest score among applicants. The consolidated tape will give market participants a unified view of EU bond trading activity, benefiting the fixed income market. Ediphy (fairCT) has been invited to apply for authorisation and once approved, will operate the bond CTP for five years under ESMA’s supervision.
