The Cyprus Stock Exchange (CSE) will be applying its new pricing policy as of 2 January 2008, aiming at making the CSE more competitive and enhancing its role and mission in the new environment created by the implementation of the new European directive MiFid.
CSE President George Koufaris said that a CSE delegation visiting Athens from November 19 to 21, to meet with the Athens Stock Exchange, will discuss their Common Platform and examine the possibility of expanding the Platform to cover other markets as well as the potential of further promoting the cooperation of the two stock exchanges, through cooperation agreements with other stock exchanges.
Koufaris presented the new CSE initiatives to enhance the stock market, noting that the general aim is, through a new pricing policy and correct cost management, to maintain the CSE as a robust organisation, creating added value for all market participants.
He noted that the new rates would be in line with those of the Athens Stock Exchange and include, inter alia, a reduction in trading fees for Main Market shares, the replacement of the membership fee with the introduction of an annual fee based on the transactions, the introduction of an annual operator tag for the use of liquidation and settlement infrastructure.
Koufaris said that the CSE has drafted a plan for the return of part of the revenue of Cypriot financial services companies (KEPEY), when the revenue exceeds certain levels, adding that this plan would be a motive for the providers to increase the volume of transactions with the CSE and for transactions in the CSE instead of other stock exchanges.
He furthermore said the CSE delegation would be meeting with members of the stock exchange and trustees in
Referring to the trading fees for shares, Kourafis said that for the Main Market shares the fees would drop to 0.015% on the annual value of the transactions and to 0.04% for those of any other market.
Regarding the annual membership fee for CSE listed companies, in the case of low marketability, Koufaris said this measure aimed at promoting companies of low marketability for dissemination and transaction purposes.
According to the CSE decisions, for companies of the Alternative Market and the Investment Companies Market, the fixed charge for the first million
For companies with up to one million pounds stock exchange value in the Main Market, the minimum annual charge will be 3,000 pounds, for the Parallel Market 1,500 pounds and for the Large Project Market and the Shipping Market 3,000 pounds.
The Main Market companies with low marketability with up to five million pounds stock exchange value will pay 500 pounds for every extra million, those of the Parallel Market and the Investment Companies Market 300 pounds and the Large Project and Shipping Markets 500 pounds.
CSE Director General Nontas Metaxas said the total amount of the increase would reach 40,000 euros, adding that this measure was a disincentive for the low marketability of a company.
Regarding the annual fixed membership fee, Koufaris said this would be paid in quarterly installments, which would be calculated based on the value of the transactions of each member for the previous quarter, including the transaction value of state and corporate bonds.
Asked if the CSE would discuss with the Athens Stock Exchange the issue of dual listing, Koufaris said this was an ongoing discussion, noting that there was no reason for a CSE listed company to seek registration in the Athens Stock Exchange as well, due to the Common Platform.
Koufaris said that the Athens Stock Exchange has assured it is not pursuing dual listing, adding that the issue would be examined.
CSE to apply new pricing policy on 2 January 2008
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