Cyprus Stock Exchange Posted
FEAS Secretariat spoke with the Acting General Manager of the Cyprus Stock Exchange Mr. Nicos Trypatsas about the key strategic initiatives of CSE, the most active instruments traded in CSE, COVID-19 impact, and more.
1. What are the key strategic initiatives CSE is working on at the moment?
The Cyprus Stock Exchange (CSE) is at present implementing a number of strategic initiatives, in order to strengthen its position, and assist further the business development of companies in Cyprus and the economy of the country, in general. Both the economy and the companies in Cyprus, face at present the challenges and negative impact of Covid-19 pandemic. It is in our view, that the Exchange could be utilised, towards the direction of restoring the enterprises and the economy from the negative effects of the pandemic and also lead them to their further development.
Of paramount importance, are the efforts carried out at present, for the implementation of the strategic plan for the CSE, that will lead to its privatisation and the strategic co-operation with a partner, who has extensive know-how and international experience in the field, who will provide added – value to the Exchange and new business development prospects. This process is expected to be completed by the second quarter of 2022.
Furthermore, the CSE is taking a number of other specific initiatives, for further developing its markets, products and services, in various ways. The Exchange offers a spectrum of markets (i.e. its regulated market, various segments, its emerging companies market – MTF, etc) that are addressed to companies and market participants and could serve respectively various needs of the enterprises. In addition, the CSE continuously introduces new services and products, with the aim of better serving investors and market needs, through adjusting its operations to the continuously changing international environment. Moreover, it should be emphasised that the CSE is expanding its products and services, in other “non-traditional core” business services, such as specific services provided to the Government in the Energy sector, other ancillary new services, as well as the provision of advanced operations with the use of new technology.
2. What are the most active instruments traded in CSE, have they changed during the last months?
Equities, as well as Bonds (Corporate and Government), are traditionally the most active instruments traded on the CSE.
However, it should be noted that during the last few years, starting with of the banking crisis that occurred in Cyprus, accompanied by a negative impact on business and the market, as well as not forgetting the recent negative impact of Covid-19, we have seen significantly reduced market interest and trading activity.
Therefore, based on these conditions that have prevailed, the Cyprus Stock Exchange places emphasis on advancing the framework of its products, markets and services, in order to minimize the impact of the above mentioned conditions.
3. What new trends (technological) are there in the local, Cypriot market?
The Cyprus Stock Exchange over the years has traditionally implemented new technology, through which, it successfully managed to serve relevant market needs and offer to its clients, a wide framework of new products and services.
This strategic direction covered tits critical operations (i.e. screen-based system for trading, clearing and settlement electronic systems, ancillary operations, as well as systems and operations for all of its other services and products), that are offered to market participants, listed companies and investors. The Exchange maintains co-operation/agreement with the Athens Exchange (ASE), the CSE – ASE Common Platform, through which it uses the ASE’s infrastructure-systems for its critical operations. Both Exchanges, by developing this co-operation, have managed to obtain significant synergies and economies of scale and therefore, they are able to successfully update periodically their operations, in accordance with the new European Directives and Regulations, i.e. MIFID II, CSDR, etc.
Moreover, the Exchange is continuously upgrading its technological infrastructure, so that to be in line with new international developments and practices. Within this framework, it is stated that the Cyprus Stock Exchange, was the leader in our country, in introducing the innovative initiative for providing electronic signatures in Cyprus, through an effective framework and by a team with sufficient expertise and know-how. This initiative proved to be very helpful to professionals and market participants, in order to modernise their operations and further improve the service they provide.
4. Today’s world is facing several challenges and how we all come together as a community will make a difference in moving forward. How are you encouraging your employees to stay positive and to avoid negativity in the workplace?
At present, new challenges and negative prevailing conditions exist, affecting people and companies, in their daily behaviour and operations. At the same time, this negative impact, results consequently in negative financial results and conditions, both for citizens and companies. Within this adverse environment, it should be noted that the Exchange on the one hand managed to continue successfully and uninterruptedly its operations during the outbreak of the pandemic, while on the other hand, its personnel stayed healthy and positive in the workplace, so that to continue accomplishing their duties and responsibilities, effectively the market.
The Exchange provides an encouraging and positive environment for its employees, as well as the required conditions for the staff, to feel secure and be positive.
5. In your personal opinion, what will life look like after COVID-19 pandemic? What are the major challenges that humanity will face in the near future?
It is expected that Covid-19 pandemic will bring new challenges, but at the same time, at least presently, continue to bringing negative impacts on people and on business. Areas such as working from home, increased use of technology, most of the meetings to be arranged with the use of technology, reduced levels of travelling, will still be common practice in the short to medium term period. We hope that, shortly, vaccines under testing at present will be successfully tested and provided to the people globally, in order to practically tackle the pandemic and gradually return to normality. In my view, however this will take some time to be effected, in order to cover the vast majority of people worldwide and therefore we all need to still be patient and positive. Regarding the business environment and the negative effects that impacted all businesses activities, it is considered that new opportunities and challenges will arise that need to be addressed successfully, in order to bring new returns and growth.