17 OCTOBER 2001
Dr Fenech Adami explained that it must be noted that while the Exchange is providing the market floor where securities trading can take place smoothly, efficiently and in the most transparent manner, the growth and development of this market must also be cultivated at the user level. It is here that Dr Fenech Adami insists that the role of the stockbroker becomes critical.
He elaborated, "Stockbrokers are in direct contact with investors, indeed, stockbrokers are licensed to give advice both to investors as well as to would-be investors. These people put their faith in you because they see you as trusted professionals giving your advice in an impartial and disinterested manner. This places a great responsibility on each one of you, a responsibility not only towards the investor but also towards the market itself."
Dr Fenech Adami emphasisedthat investor confidence is ultimately what makes or breaks a market. And that the current administration has worked hard during its period in office to generate confidence as it firmly believes that sustained confidence underpins the continued development of our economy.
However, he warns that confidence and trust can only be truly generated if we can rise above our own egoistic expectations and consider national interests first and foremost.
According to the prime minister, "The main function of an exchange is to further the development of the economy by channelling savings into productive investment. The market should not therefore be seen as a gambling establishment where people try their luck to make money. It is important that investors get the right message, and brokers have a critical role in getting this message across."
Speaking about the operations and initiatives undertaken by the Exchange in its 10 years of existence, Dr Fenech Adami comments that it has achieved an important place in the national economic framework.
He elaborated, "When the Exchange opened for business in 1992, most people were sceptical about its future. Today we are pleased to say that we have an organisation that has not only achieved national recognition, but also enjoys an international status. The Malta Stock Exchange enjoys full membership of the International Federation of Stock Exchanges and has also been accepted as an Associate Member of the Federation of European Securities Exchanges.
"During the past ten years, the Exchange has led a nomadic existence,
moving premises a number of times, but today Im sure you will
all agree that these premises were well worth waiting for."