CSE amendments fail to be discussed

A draft proposal to amend a number of CSE rules and regulations that are needed to pave the way for the setting up of a common trading platform with the ASE failed to be discussed by the House during its final session before the summer recess, putting into serious doubt expectations that the two exchanges will trade together end of the year.

The failure by the House to discuss the amendments means the changes need to wait until October when the House comes back from its summer recess and will most probably start work on the 2006 budget discussions.

The CSE Council and its energetic chairman Akis Cleanthous had previously received assurances from the government, the Finance Ministry, the Attorney General and the main political parties that they would speed up discussions on various amendment laws needed to modernise the exchange and support its ambitious development plans.

One of the amendments that failed to be discussed by the House referred to the change in the Initial Public Offering law and the role of the CSE.

More delays have also been seen as regards the tabling of the bill on the introduction and active trading of government on the CSE. Although currently the bonds are listed on the exchange, yet they are seldom traded and and spreads are very wide due to lack of market makers. The Finance Ministry has been working, discussing and studying for years ways and means on how the government bonds will be traded, but as yet they have not introduced the draft bill.

The CSE has maintained that the active trading of bonds is a centerpiece of its development and expansion plans.