Explained: MFSA on Derivatives Trading Markets in Malta

In this Article

What are the new changes to trading Markets in Malta? Max Frilot explains in some detail the recent announcement by the MFSA regarding licensed investment entities dealing in derivatives and European Market Infrastructure Regulation (EMIR) reporting. Find out more about Trading Markets in Malta, the recent announcement below and contact us to learn how we can help your business achieve its goals!


What's Behind the EMIR?

Trading Markets in Malta

Accordingly, the EMIR entails the primary objective of providing further clarity regarding the derivatives markets. Aside from this, it also aims to reduce the associated risks connected with derivatives markets. Hence, the Malta Financial Services Authority (MFSA) enacted several initiatives to provide supervision over the dealing of derivative contracts.

The Developments Brought by the MFSA

Trading Markets in Malta

The MFSA has since been conducting heavy monitoring. It investigates both financial and non-financial counter-parties in the category of the EMIR to ascertain whether compliance with both the regulation and industry standards are being met.

This aspect, along with the reviewal of conduct procedures in relation to the EMIR, allow the MFSA to act on the European Securities Markets Authority’s (ESMA) request for enhanced EMIR data quality. In fact, the MFSA issued a questionnaire. It addressed all individuals participating in the market, namely counter-parties, to derivative contracts in Malta. Furthermore, this was constructed with the premise of acquiring a better understanding as to the condition of derivative contracts in Malta. Simultaneously, the MFSA gained clarity as to the nature of Maltese counter-parties’ activities in the trading of derivatives in Malta.

Conclusively, the MFSA suggests that the questionnaire should be completed by individuals who possess the essential knowledge and experience about how the entity proceeds regarding derivative contracts. The questionnaire must be filled in for entities that fall into the scope of EMIR. It is imperative that all information is condensed properly and correctly into the questionnaire by 31 October 2022. Failure to comply with the deadline will be taken into consideration by the authority.

How Can We Help?

Get in touch with us for specialised assistance, or contact us directly on contactmkfintech@kyprianou.com

Key Contact

Max Frilot

Legal Assistant

More about MK Fintech Partners Ltd.

Michael Kyprianou Fintech Partners Ltd. is a Maltese company providing services in the FinTech sector. It comprises a team of dedicated experts who provide services such as Legal Advisory, Crypto Licensing, Token Issuers’ Licensing, Investment Services Licensing, and registrations of activities related to Fintech, Crypto, Blockchain & Data Protection, Investment Funds Services & Banking, Company Incorporations, and M&As.

MK Fintech Partners forms part of the Michael Kyprianou Group, a top tier international legal and advisory firm. It has established an enviable reputation as a broad-based legal practice over the years. Mainly by keeping at heart its principle to always exceed its clients’ expectations. MK has grown to become one of the largest law firms in Cyprus with offices in Nicosia, Limassol and Paphos. The MK Group’s international presence also includes fully-fledged offices in Greece (Athens and Thessaloniki), Malta (Birkirkara), Ukraine (Kiev), the United Arab Emirates (Dubai), United Kingdom (London), Israel (Tel Aviv), and Germany (Frankfurt).

The content of this article is valid as at the date of its first publication. It intendeds to provide a general guide to the subject matter and does not constitute legal advice. We recommend that you seek professional advice on a specific matter before acting on any information provided. For further information, contact us at MK Fintech Partners via email at contactmkfintech@kyprianou.com or by telephone +356 2016 1010.

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