12/01/2016 16:12
The Cyprus Stock Exchange is focusing on further development of the NEW stock market of CSE while at the same time is looking forward to the introduction of state companies after their privatisation.
At a press conference, the President of CSE board Marios Pilavakis, said that the new CSE market has become a new important project of the CSE in recent years despite the very difficult general economic climate that prevailed.
Mr. Pilavakis noted the interest coming from foreign companies, or Cypriot companies of foreign interests, for entering the new market.
"During the period under review of our tenure, the shares of a company from the United Kingdom and three Cypriot companies two of which are of foreign interests have been listed on the Stock Exchange. Also 17 bonds of companies registered in the United Kingdom were introduced in the NEW CSE Market” Mr. Pilavakis said.
He highlighted the fact that 14 new requests (8 relating to shares and 6 bonds) are pending for consideration for admission this period, noting that this is remarkable and demonstrates the substantial prospects of the NEW Market.
Cooperation with stock exchanges
Mr. Pilavakis said that the CSE has recently signed an updated Memorandum of Understanding with the Athens Exchange (ATHEX) to extend the ATHEX-CSE Common Platform, with the subject of CSE and Athexclear (subsidiary clearing company of ASE) discussing their possible cooperation, in order for Athexclear to undertake the clearing of transactions on CSE markets.
"The implementation of this Memorandum, provides the advantage of further improvement of the clearance of Markets and Products of the CSE, since the CSE Markets and products will be able to become more competitive and internationally recognizable as to their liquidation status. It is also expected that significant economies of scale will be created for the Markets and their participants, while this can assist the development of CSE in other new markets” he noted.
In addition the current Agreement of the Common Platform ATHEX-CSE, has been extended with improved conditions for the CSE while both stock exchanges agreed to consider the listing of the first traded fund (ETF - Exchange Traded Fund) on the CSE.
The CSE has also signed Memoranda of Understanding with foreign stock exchanges for additional partnerships, which are at an advanced stage. In order to overcome problems due to the reduced liquidity of the Cyprus stock market, it is pursued at an initial stage, that such partnerships focus on issues of dual listing of companies on Stock Exchanges. Thus, the aim is for companies to get the opportunity through such partnerships, to use the liquidity provided by large markets and give CSE added value as well as increased recognition.
Asked about the liquidity problems of CSE, Mr. Pilavakis said that it is a general problem for stock markets of the south eastern Europe, adding that the NEW CSE market due to more flexible regulations that govern it is able to attract new companies.
Full member of the Euro-Asian Stock Exchange
As mentioned by Mr. Pilavakis, in November 2015, after years of efforts, the inclusion of CSE as a full member of the Federation of Euro-Asian Stock Exchanges has been unanimously endorsed. The Federation has the stock exchanges in the Middle East, South - Eastern Europe and Asia as registered members. CSE, as the stock market of a member state of the European Union can play an important role as a bridge and a way into the EU for these countries, while separate Memoranda of Understanding have been signed with several stock exchanges of these countries. Important geopolitical developments, developments in regional economies and the very important sector of Energy, open up significant prospects which are extensively examined, as noted.
Asked how the a full inclusion in the Euro-Asian stock exchanges was achieved, taking into account the objections of Turkey, Mr. Pilavakis said that this was achieved after a long struggle. “Turkey has aspirations for membership in the European Union, it seems that the environment expands and becomes more versatile” he said adding that the presidency was held by Egypt with which our country has a very good relationship, something which played an essential role in this development.
The CSE has also proceeded to changing its Regulatory Decisions (August-September 2015), so that new corporate securities, can be introduced without the registry of these titles being given to the CSE.
Following the initiative of the CSE, the parliament recently passed an amendment bill prepared by the CSE to provide the possibility of introducing Alternative Investment Funds (AIFs) to the CSE in addition to the possibility of introducing Undertakings of Collective Investment in Transferable Securities (UCITS) which already existed.
Mr. Pilavakis was also asked about privatizations of semi-governmental organizations, noting that in Europe, it is common practice for them to be processed through the stock exchange.
At a press conference, the President of CSE board Marios Pilavakis, said that the new CSE market has become a new important project of the CSE in recent years despite the very difficult general economic climate that prevailed.
Mr. Pilavakis noted the interest coming from foreign companies, or Cypriot companies of foreign interests, for entering the new market.
"During the period under review of our tenure, the shares of a company from the United Kingdom and three Cypriot companies two of which are of foreign interests have been listed on the Stock Exchange. Also 17 bonds of companies registered in the United Kingdom were introduced in the NEW CSE Market” Mr. Pilavakis said.
He highlighted the fact that 14 new requests (8 relating to shares and 6 bonds) are pending for consideration for admission this period, noting that this is remarkable and demonstrates the substantial prospects of the NEW Market.
Cooperation with stock exchanges
Mr. Pilavakis said that the CSE has recently signed an updated Memorandum of Understanding with the Athens Exchange (ATHEX) to extend the ATHEX-CSE Common Platform, with the subject of CSE and Athexclear (subsidiary clearing company of ASE) discussing their possible cooperation, in order for Athexclear to undertake the clearing of transactions on CSE markets.
"The implementation of this Memorandum, provides the advantage of further improvement of the clearance of Markets and Products of the CSE, since the CSE Markets and products will be able to become more competitive and internationally recognizable as to their liquidation status. It is also expected that significant economies of scale will be created for the Markets and their participants, while this can assist the development of CSE in other new markets” he noted.
In addition the current Agreement of the Common Platform ATHEX-CSE, has been extended with improved conditions for the CSE while both stock exchanges agreed to consider the listing of the first traded fund (ETF - Exchange Traded Fund) on the CSE.
The CSE has also signed Memoranda of Understanding with foreign stock exchanges for additional partnerships, which are at an advanced stage. In order to overcome problems due to the reduced liquidity of the Cyprus stock market, it is pursued at an initial stage, that such partnerships focus on issues of dual listing of companies on Stock Exchanges. Thus, the aim is for companies to get the opportunity through such partnerships, to use the liquidity provided by large markets and give CSE added value as well as increased recognition.
Asked about the liquidity problems of CSE, Mr. Pilavakis said that it is a general problem for stock markets of the south eastern Europe, adding that the NEW CSE market due to more flexible regulations that govern it is able to attract new companies.
Full member of the Euro-Asian Stock Exchange
As mentioned by Mr. Pilavakis, in November 2015, after years of efforts, the inclusion of CSE as a full member of the Federation of Euro-Asian Stock Exchanges has been unanimously endorsed. The Federation has the stock exchanges in the Middle East, South - Eastern Europe and Asia as registered members. CSE, as the stock market of a member state of the European Union can play an important role as a bridge and a way into the EU for these countries, while separate Memoranda of Understanding have been signed with several stock exchanges of these countries. Important geopolitical developments, developments in regional economies and the very important sector of Energy, open up significant prospects which are extensively examined, as noted.
Asked how the a full inclusion in the Euro-Asian stock exchanges was achieved, taking into account the objections of Turkey, Mr. Pilavakis said that this was achieved after a long struggle. “Turkey has aspirations for membership in the European Union, it seems that the environment expands and becomes more versatile” he said adding that the presidency was held by Egypt with which our country has a very good relationship, something which played an essential role in this development.
The CSE has also proceeded to changing its Regulatory Decisions (August-September 2015), so that new corporate securities, can be introduced without the registry of these titles being given to the CSE.
Following the initiative of the CSE, the parliament recently passed an amendment bill prepared by the CSE to provide the possibility of introducing Alternative Investment Funds (AIFs) to the CSE in addition to the possibility of introducing Undertakings of Collective Investment in Transferable Securities (UCITS) which already existed.
Mr. Pilavakis was also asked about privatizations of semi-governmental organizations, noting that in Europe, it is common practice for them to be processed through the stock exchange.
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