Cyprus stock exchange gets go ahead for Athens tie-up

Trading will be in euros

Legislators gave the Cyprus Stock Exchange the go-ahead for its tie-up with the Athens Stock Exchange on Thursday, which should pave the way for the common trading platform launch by the end of June.

The new platform should bring more foreign interest and liquidity into Cypriot shares.

In its last session before the parliamentary elections on May 21, the Cyprus House of Representatives passed the two bills which the investing community has been waiting for, relating to the Central Registry and the rules on remote trading.

The trading hours (Greek and Cyprus time, ie CET + one hour) are as follows: Main index 11.15-17.00; Parallel, Alternative and Investment companies 11.15-14.30; Bonds 11.30-13.30; Special categories 11.15-13.30 in three session of 45 minutes each day.

The common trading platform, which has undergone many delays, was meant to be launched on April 3 but was delayed as legislation had not been passed and many questions, particularly relating to euro conversion, remained unanswered.

Under the new system, Cyprus shares will technically stay in Cyprus and authorised brokers will have access to the remote exchange.

Trading will be in euros. The first official change from the Cyprus pound will be based on the Central Bank of Cyprus mid-point closing price prior to the conversion.

Thereafter, investors need to negotiate individually with their banks on conversion rates. A block deal between the CSE and banks was avoided owing to fears that it would breach competition rules.

Prices will be quoted to two decimal places, not three as many smaller titles in the CSE have been to date.