First shipping application for CSE
The Cyprus, Thessaloniki and Athens bourses have won a European Commission tender to develop the Egyptian Capital Markets Authority (CMA), the Cyprus Stock Exchange’s senior official said in Dubai.
Nondas Metaxas, CSE Director General and CEO, told a World Exchange Congress held in the emirate that the objective of the project co-developed by the CSE, the Thessaloniki Stock Exchange Centre (S.A) and Athens Stock Exchange is to provide support to the Egyptian CMA as well as the Egyptian Directors Centre on capacity building, training, procedures, international accreditation and the provision of legal advice.
Metaxas was one of the keynote speakers at the three-day meeting in Dubai where heads of stock exchanges from around the globe met with industry experts and professionals to discuss strategies to boost business.
Other services to be provided by the CSE and the other partner exchanges include:
*Short-term technical assistance and training in specialised areas related to the modernisation of Capital Market activities (e.g. securitisation, margin trading).
*Support for initiatives to promote Egyptian capital markets and the publicly quoted corporate sector as an attractive destination for international investment.
*Targeted training activities and seminars to raise awareness of corporate governance principles and best practice in Egypt, and to address the specific needs in this area of Egyptian banks and financial institutions.
Boosting revenue
Metaxas told the World Exchange Congress in Dubai that the CSE is at present a state owned organisation, but that there is considerable discussion concerning CSE’s privatisation.
The CSE has a market capitalisation of EUR 12.5 bln for 143 listed companies. Its daily trading volume from the beginning of the year amounts to EUR 7.1 mln.
The CSE’s efforts to increase revenue have been focused on the traditional methods and new areas. Metaxas said the CSE has concentrated on increasing traditional means of revenue from membership and trading. This should happen while maintaining competitive fees as compared to other exchanges, and could be achieved through increased listings and trading volumes.
“As a means to achieve this, it was decided to establish the Common Trading Platform with the ASE. We will increase the Members of the Exchange through remote membership, increase liquidity, hence make Cyprus an attractive listing place for local and foreign companies and hopefully increase the daily volume.”
The CSE and the ASE will be using identical software systems for the trading, clearing and settlement of transactions and the Central Depository/Registry. In addition the Trading, Clearing and Settlement Rules of the CSE will be harmonised with those of the Athens Exchange.
Shipping Co. on CSE
Another activity in this direction was to identify market niches, where synergies with thriving sectors of the economy could be achieved. One example of such a sector is shipping.
Already the first shipping company has applied for a listing on the CSE.
Another important asset is the operation by CSE of the Central Registry, providing a valuable income stream.
CSE has also organised trading seminars for members and listed companies on various issues, for example corporate governance and Internal Accounting Standards and has established a special department to provide assistance to other Exchanges.
