Malta Treasury Bills (Dematerialisation) Regulations, 2007

L.N. 59 of 2007

MALTA TREASURY BILLS ACT

(CAP.133)

Malta Treasury Bills (Dematerialisation) Regulations, 2007

IN exercise of the powers conferred by article 12 of the Malta

Treasury Bills Act, the Prime Minister and Minister of Finance has

made the following regulations>

(1) The title of these regulations is the Malta Treasury Bills

(Dematerialisation) Regulations, 2007.

(2) These regulations shall come into force on the appointed

dematerialisation date as established by the Minister responsible for

Finance by notice in the Gazette.

In these regulations>

“Accountant General” refers to the office as established by

the Accountant General Ordinance<

“appointed dematerialisation date” means the appointed date

when Treasury bills are registered on the Central Securities

Depository. The Minister shall, by notice in the Gazette, give

notification of such appointed dematerialisation date<

“authorised intermediary” means an investment firm

authorised by the competent authority, or by a foreign authority to

provide services referred to in Section (1)(b) and (2) of the Annex

to the European Council Directive 93#22#EEC of the 10 May 1993

within the meaning of Article 15 of the Directive<

“business day” means any day which is not a Saturday and

Sunday or a public holiday, when the securities market in Malta is

closed as shall be notified by the Exchange from time to time<

“Central Securities Depository” has the same meaning as

assigned to it by article 2 of the Financial Markets Act<

“competent authority” means the person or body appointed

by the Minister to carry out the functions of competent authority

under the Financial Markets Act<

“cut-off price or rate” means the minimum price or maximum

rate set by the Accountant General at which bids are accepted<

“Exchange” means the Malta Stock Exchange established

under article 24 of the Financial Markets Act<

“recognised investment exchange” means a person in respect

of whom the Competent Authority has issued a recognition order

in terms of the Financial Markets Act<

“Treasury bills” means dematerialised securities with a

maturity not exceeding twelve months from the date of the bill.

(1) Treasury bills are registered on the Central Securities Registration on a

Central Securities

Depository.

Depository.

(2) The Accountant General may, at his discretion, list on a Listing of Treasury

bills

recognised investment exchange such Treasury bills.

(1) Treasury bill tranches are identified by the issue date Identification.

and the respective maturity date.

(2) The Central Securities Depository shall assign an

International Security Identification (ISIN) Code to each Treasury bill

(1) An indicative issuance calendar of Treasury bills shall Issuance calendar.

be published on a monthly basis in the Gazette and by such other means

as may be determined by the Accountant General.

(2) The calendar shall list the maturities of the Treasury

bill tranches to be issued during the following month, the date of the

auction and any such other information as may be determined by the

Accountant General.

The Accountant General shall determine the nominal amount Authority to issue

bills.

of Treasury bills to be issued in the periodic auctions, as well as the

term and mode of issue of such Treasury bills, in accordance with such

authorisation as may be issued from time to time by the Minister.

Modes of issue.

(1) Treasury bills may be issued>

(a)

at a fixed price or fixed rate of discount, or

(b) by a competitive auction after an invitation to bid, or

(c)

by a non-competitive auction.

(2) Treasury bill auctions are held on a weekly basis or as

may otherwise be determined by the Accountant General.

(3) When Treasury bills are issued at a fixed price or fixed

rate of discount, such price or rate shall be fixed by the Accountant

General.

(4) Save as provided in sub-regulation (5) of this regulation,

the Accountant General shall invite applications or tenders for Treasury

bills by giving notice in the Gazette not less than three business days

prior to the final date on which applications or tenders will be received

by the Accountant General. Such notice shall specify the date of the

auction, the deadline for submission of bids, the period for which the

bills are to be issued, the settlement date and the mode of payment of

bills.

(5) Notwithstanding the provisions of sub-regulation 4 of

this regulation, the Accountant General reserves the right to invite a

select group of institutional investors to participate in special tenders

whereby such investors will be requested to submit their bids within

such number of hours as may be stipulated in the invitation. These special

tenders shall be settled on the day of the tender or on such other day as

may be set by the Accountant General in the invitation to bid.

(1) Treasury bills are zero coupon securities and are issued

at a discount with the interest being deducted from their nominal value.

(2) The computation of discount or interest shall be in

accordance with such methodology as shall be notified to the market by

the Accountant General from time to time.

(1) The minimum amount of the bids tendered shall be such

amount as may be determined by the Accountant General from time to

time.

(2) The Accountant General reserves the right to set a

different minimum amount of bids for different maturities.

(1) Bids shall be made on the prescribed application form,

by fax on a number registered with and recognised by the Treasury, by

e-mail or by such other means as may be determined by the Accountant

General.

(2) Separate applications or tenders shall be made for bids

at different prices or rates as applicable.

(3) Only bids which reach the Treasury by the prescribed

time on the tender date will be accepted.

(4) Only offers with a definite price or rate, as applicable,

will be considered.

(5) The Accountant General shall not be bound to accept

any applications unless payment in respect of the application is made

as may be specified on the form of application.

(1) In the case of a competitive auction, placements shall Form of Allotment.

be made in accordance with a system whereby bids are sorted in

ascending order of rates or descending order of prices, whichever is

applicable.

(2) The Accountant General reserves the right to determine

a cut-off rate or price, as applicable, on the basis of the bids received.

Applications at a rate equal or lower than such cut-off rate (or at a price

equal or higher than such cut-off price) shall be satisfied in full, unless

the total amount of such bids exceeds the amount which the Treasury

has decided to issue. In the latter case, bids at the cut-off price or rate,

as applicable, shall be allotted on a pro-rata basis. All accepted bidders

shall pay the bidding price or the price as calculated from each respective

rate as specified in their bids.

(3) The Accountant General reserves the right to reject all

bids without assigning any reason therefore.

(1) Upon acceptance, the successful and unsuccessful Acceptance.

bidders shall be notified of their allotment or rejections by not later

than the following business day.

(1) Settlement of the amount allotted to each successful Settlement.

bidder shall take place not more than three business days after the auction

date as may be determined by the Accountant General.

(2) Payment and settlement shall be made on the date on

which the relative Bills are dated, by not later than such time and in

accordance with such procedures as the Accountant General may

determine. The value date of the payment instrument shall be the issue

date of the Treasury bill.

(3) When the date of the auction or settlement falls on a

public holiday, such auction and relative settlement shall take place on

the first business day immediately before.

(1) Bills are redeemed at nominal value upon maturity.

(2) The principal sum of matured bills shall be payable to

the registered holder as appearing in the Central Securities Depository

on the maturity date specified in the bills by crediting directly a bank

account as may be specified by the respective holder.

(3) Treasury bills maturing on a public holiday shall be

redeemed one business day before their maturity date.

The Accountant General may, at his discretion, redeem bills

on a date prior to maturity through buy-back arrangements on such

terms as may be negotiated on a voluntary basis between the Treasury

and the respective Treasury bill holders. The Accountant General

reserves the right to determine whether such buy-back arrangements

are to be offered to all Treasury bill holders through a public

announcement or selectively on a bilateral basis.

(1) Transactions in Treasury bills in the secondary market

shall be subject to the rules of the recognised investment Exchange

where they are admitted to listing and trading.

(2) Settlement of secondary market transactions in Treasury

bills shall be effected in accordance with the prevailing clearing and

settlement rules of the recognised investment Exchange where the

Treasury bills are admitted to listing and trading.

Mitbug[ fl-Istamperija tal-Gvern — Printed at the Government Printing Press

Lm0.20 (€0.47)