Cyprus central bank curtails brokers’ activities

Central Bank Governor Panicos Demetriades issued a new decree Tuesday morning that effectively stops all stock brokerage firms that have dealing with foreign custodians through the common Cyprus-Greece trading platform, in order to prevent capital flight.
This caused trades on the Cyprus Stock Exchange and the Athens bourse to sink to just 19,800 euros, with Citibank reportedly considering suspending its custodial services through the common platform.
The new decree, issued with the full knowledge of the Troika negotiators, aims to limit trades only to brokers that deal with custodial firms in Cyprus.
A joint meeting with the CSE, the Cyprus Securities and Exchange Commission and the brokers will be held Wednesday morning at the CISCO offices in Nicosia.