Cyprus And Athens Stock Exchanges Sign Cooperation Agreement

by Lorys Charalambous, Tax-News.com, Cyprus

21 September 2005

It emerged this week that the Cyprus and the Athens Stock Exchanges have signed an agreement for the creation of a common trading platform for the two markets.

The new platform, which will give investors the opportunity to invest in more markets, is expected to be operational next year.

Hellenic Exchanges does not expect significant additional revenues from the cooperation, although it is thought that there could be a cost benefit to investors due to a reduction in IT-related expenses.

During a meeting between officials from both bourses earlier in the month, it was discussed how CSE companies will be included in the ASE International Index, which requires companies to have a minimum market cap of EUR100 million and a satisfactory free float.

Currently, six Cypriot companies have sufficient market capitalisation to qualify for a listing on the ASE International Index, the largest of which is the Bank of Cyprus, which has a market cap of EUR1.7 billion.

Sources told the Financial Mirror that initial difficulties with BOC's listing on both the ASE and the CSE have been overcome.

Hellenic Exchanges’ management is also in negotiations for similar types of arrangements with other markets in South East Europe, and is believed to be close to a new agreement with the Romanian stock exchange.

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