Cyprus brokers snub CSE price reduction

The Association of Cyprus Financial Services Firms has snubbed the Cyprus Stock Exchange decision to proceed with a reduction in trading fees from January 2008 and has called a press conference on Friday to explain its position.

CSE Chairman George Koufaris said the Cyprus Exchange will proceed with a thorough restructuring of its fee policy and charges as part of its objective to remain competitive in a desperate attempt to overturn the loss of business to the Athens Stock Exchange.

A high level CSE delegation headed by Koufaris and accompanied by CSE Director General Nontas Metaxas will be meeting with Athens Stock Exchange on Tuesday to discuss the “flight of business to the ASE” and the new pricing policy, which brings trading fees at par with the ASE.

The CSE is worried that with its two largest titles, Bank of Cyprus and Marfin Popular Bank maintaining their dual listing on both exchanges, it will continue to lose business to Athens.

According to the latest official data, already 45% of the Bank of Cyprus share registry and up to 80% of daily trades are being conducted on the ASE while in the case of Marfin Popular Bank, the share registry is 65% with again 80% of daily trades occurring on the ASE.

“We are considering all options, which among others includes convincing the two banks to choose the CSE, but for sure the present situation cannot be tolerated,” said Koufaris.

The CSE plans to slash its trading fees to 0.015% for Main Market titles and 0.04% for all other trades from its previous 0.04% fees, bringing its fee scales at the level charged by the ASE.

CSE members, the financial services firms or KEPEY as they are known in Greek will be charged new rates, but will be offered a cash rebate scheme provided they exceed their targets and if the CSE manages to break even.

The CSE wants to also increase the listing fees for titles that seldom trade and from January 2, 2008 it wants to charge EUR 10 fee for every trading account opened and for every transfer of stocks from Global account to designated trading account, up the fee to EUR 5 from EUR 1 now. For statement of accounts, the CSE wants to increase the rate to EUR 4 from EUR 2 now. The Annual CSE Online subscription will also be increased to EUR 8.50 per annum.