Curmi & Partners

Changes in trading on the MSE under MiFID II

The revised Markets in Financial Instruments Directive, MiFID II, took effect on the the 3rd of January 2018. MiFID II has brought about several changes which impact trading on the Malta Stock Exchange ("MSE"), namely:

  • Iceberg Orders, Hidden Orders and Midpoint Orders will no longer be available for the local market in order to improve trade transparency
  • Trading in ALL Maltese Equities will follow the new Tick Size rules, as set forth by the EU Regulation 2017/588. Specifically, equity tick size will be determined by 2 criteria: Price Range and Liquidity Band. The table below illustrates this classification

Tick Size Rules - EU Regulation 2017/588

                                                                Liquidity Bands
Price Ranges 0Average number of transactions<10 10Average number of transactions<80 80≤Average number of transactions<600 600Average number of transactions<2000 2000≤Average number of transactions<9000 9000Average number of transactions
0price<0.1 0.0005 0.0002 0.0001 0.0001 0.0001 0.0001
0.1price<0.2 0.001 0.0005 0.0002 0.0001 0.0001 0.0001
0.2price<0.5 0.002 0.001 0.0005 0.0002 0.0001 0.0001
0.5price<1 0.005 0.002 0.001 0.0005 0.0002 0.0001
1price<2 0.01 0.005 0.002 0.001 0.0005 0.0002
2≤price<5 0.02 0.01 0.005 0.002 0.001 0.0005
5≤price<10 0.05 0.02 0.01 0.005 0.002 0.001
10≤price<20 0.1 0.05 0.02 0.01 0.005 0.002

Source: Commission Delegated Regulation (EU) 2017/588 of 14 July 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council with regard to regulatory technical standards on the tick size regime for shares, depositary receipts and exchange-traded funds

Based on existing liquidity levels, all local equities, except for Bank of Valletta plc ("BOV"), fall into Liquidity Band 1 (BOV falls into Liquidity Band 2). For example, Simon Farsons Cisk plc falls into Liquidity Band 1 and within the Price Range of 5≤price<10. This means that the applicable tick size is 0.05. Hence, only prices of 8.50, 8.55, 8.60 etc will be accepted. Order prices of 8.51, 8.53, 8.565 will be rejected. Below are the tick sizes currently applicable to the Equities listed on the MSE, these may change over time, depending on the price range and average daily volume.

Tick Size for Equities on the MSE

MSE Code Security Name Closing Price as at 05.01.2018 Applicable Tick Size Eg Acceptable Trading Prices Eg Trading Prices that will not be accepted
BOV Bank of Valletta plc 1.80 0.005 1.80, 1.805, 1.81 1.801, 1.802, 1.803
HSB HSBC Bank Malta plc 1.76 0.010 1.76, 1.77, 1.78 1.765, 1.775, 1.783
LOM Lombard Bank plc 2.30 0.020 2.32, 2.34, 2.36 2.31, 2.33, 2.35
MMS Mapfre Middlesea plc 1.82 0.010 1.82, 1.83, 1.84 1.825, 1.835, 1.843
SFC Simonds Farsons Cisk plc 8.50 0.050 8.50, 8.55, 8.60  8.51, 8.57, 8.63
GO GO plc 3.56 0.020 3.56, 3.58, 3.60  3.55, 3.57, 3.59
IHI International Hotel Investments plc 0.64 0.005 0.64, 0.645, 0.65 0.641, 0.642, 0.643
LQS Loqus Holdings plc 0.18 0.001 0.175, 0.176, 0.177 0.1755, 0.1765, 0.1775
PZC Plaza Centres plc 1.11 0.010 1.11, 1.12, 1.13 1.105, 1.115, 1.125
GCL GlobalCapital plc 0.32 0.002 0.32, 0.322, 0.324 0.321, 0.323, 0.325
FIM FIMBank plc 0.69 0.005 0.69, 0.695, 0.70 0.691, 0.692, 0.693
MIA Malta International Airport plc 4.70 0.020  4.70, 4.72, 4.74 4.71, 4.73, 4.75
MDS Medserv plc 1.15 0.010 1.15, 1.16, 1.17 1.155, 1.165, 1.175
GHM Grand Harbour Marina plc 0.763 0.005 0.765, 0.77, 0.775 0.761, 0.762, .764
MTP MaltaPost plc 2.12 0.020 2.02, 2.14, 2.16 2.13, 2.15, 2.17
RS2 RS2 Software plc 1.53 0.010 1.53, 1.54, 1.55 1.535, 1.536, 1.537
MDI MIDI plc 0.35 0.002 0.35, 0.352, 0.354 0.351, 0.353, 0.355
MLT Malita Investments plc 0.815 0.005 0.815, 0.82, 0.825 0.812, 0.813, 0.814
TML Tigne Mall plc 1.09 0.005 1.08, 1.085, 1.09 1.088, 1.089, 1.091
PFC Pefaco International plc 2.24 0.020 2.24, 2.26, 2.28 2.21, 2.23, 2.25
STS Santumas Shareholdings plc 2.25 0.020 2.24, 2.26, 2.28 2.23, 2.25, 2.27
MPC Malta Properties Company plc 0.44 0.002 0.44, 0.442, 0.444 0.441, 0.443, 0.445
PG PG plc 1.40 0.010 1.40, 1.41, 1.42 1.405, 1.415, 4.425
SFA SFA SpA plc 2.78 0.020 2.78, 2.80, 2.82 2.79, 2.81, 2.83