Cyprus Stock Exchange Completes Cooperation Agreement with GXG Market
The Cyprus Stock Exchange (CSE) has finalized a cooperation agreement with Danish stock exchange GXG Market, which will see the implementation of a procedure of mutual co-operation, with an aim to promoting dual or parallel listings on the GXG Main Quote Market and the ECM Market of the Cyprus Stock Exchange.
This agreement will allow both Exchanges to offering a wider range of options to their listed companies - as well as to other market participants - with flexible and effective procedures and competitive fees.
During a press conference held on Thursday, George Koufaris, Council Chairman of the CSE, noted that the cooperation offers the opportunity for companies listed with the Exchange to secure a parallel listing in another recognized market – the GXG – with simplified procedures and competitive fees, therefore enabling their access to the liquidity that exists in each market.
Despite the commendable work of the CSE council, which has laid the foundation for the further development of the local Exchange, the financial crisis has had a significant negative effect on the CSE, Koufaris continued, revealing that this is reflected in 2014’s annual volume. Recorded at €75 million, the year’s volume represents a significant decline in comparison to 2010’s €870 million.
"Listed companies have a hard time, with poor results, and without growth there are no new companies at the CSE. In this environment and with the general uncertainty in the economy, investor interest has been reduced," he added.
The Chairman further referred to the decision taken on the consolidation of the regulated markets, which will take effect as of April 20. In this context, he explained, the composition of indices of listed securities on the CSE will be differentiated. In particular, the indices will be categorized by the Main Market, the Alternative Market, the State Bonds Market, the Investment Companies Market, the Investment Funds Market and the Supervision Market.