CSE informs CCCI on semi-regulated market

The CSE Council had a meeting with the Executive Committee and the Board of Directors of the Cyprus Chamber of Commerce and Industry.  During the meeting, which falls under the CSE policy for regular information of the productive classes on the developments in the stock market, the two parties discussed issues concerning the stock exchange, its development and the draft on the semi-regulated market. 

 

According to the CSE representatives, the new market will be characterized as non-regulated and it will not fall under the provisions applied to the regulated markets and impose strict listing requirements.  It was clarified, however, that the market will operate in accordance with the CSE Regulations and it will be a Multipartite Trading Mechanism, as this is described in the new Directive for the MIFID. 

 

The CSE will be exclusively responsible for the determination of the listing requirements and the obligations of the Companies and the Directors, as well as the imposition of fines for possible violations. 

 

The new market, which will be supervised by the Securities and Exchange Commission, addresses to:

 

– Non-listed companies that seek financing and easy access to the secondary market. 

– Investors who seek new forms of investment, being aware of the high risk of the market. 

– Listed companies that cannot or do not wish to be burdened with higher cost in a regulated market. 

 

The advantages of the new market are as follows:

 

Advantages for the CSE:

 

– The launch of the semi-regulated market is expected to boost further the CSE operation and to increase its competitiveness to the benefit of all participants

 

– The existing know-how and infrastructure of the market will be developed

 

– The launch of the semi-regulated market will offer a faster comprehension of the new MIFID directive and will create the conditions for a gradual and smooth transfer of the CSE and the participants in its markets to the after-MIFID environment.

 

The trading in the semi-regulated market will have the following advantages for the non-listed companies:

 

– It is an alternative financing method with competitive cost. 

 

– It promotes their reputation.

 

– It prepares their transfer to the regulated market with the gradual increase of their shares’ dispersion and marketability.

 

For the listed companies in the regulated market, the listing in the new market is:

 

– A way out if they cannot or do not wish to be burdened the cost of the increased obligations that the regulated markets have, without being off-floor

 

Advantages for the mediators of the primary and secondary market (banks, Investment Firms):

 

– Expansion of activities with new products.

 

– Promotion of their reputation.

 

– Possibility of self-regulation and strengthening of the confidence of the market to them.

 

Advantages for investors

 

– New investment opportunities for investors who wish to invest in companies with high prospects of growth but with high risk too.