The Ministry of Finance of the Republic of Cyprus, the SIX Swiss Exchange and the Cyprus Stock Exchange (CSE) announced today, 31 January 2022, the successful establishment of the post-trade infrastructure required to implement the parallel listing of the Euro Medium Term Notes (EMTN) of the Republic of Cyprus on the Cyprus Stock Exchange.
SIX has developed a post-trading solution that enables the Cyprus Stock Exchange to act as a Central Securities Depository to provide custody, settlement and servicing services for the EMTNs.
This collaboration will provide further liquidity to the Republic of Cyprus' financial instruments and will form the basis for joint innovation projects in the future.
The Minister of Finance of the Republic of Cyprus Mr. Constantinos Petrides commented: "Providing new liquidity tools for the Republic of Cyprus' financial instruments and improving the efficiency of public debt management while serving the public interest has always been a high priority for the Ministry of Finance. In this context, the Ministry of Finance welcomes the successful partnership between SIX and the Cyprus Stock Exchange, which will provide an additional option for Cypriot investors to invest and trade in the Republic's international bond issues and will further enrich the services provided by the CSE. An additional priority of the Ministry of Finance is to transform the capital market infrastructure into an innovative catalyst to enhance economic growth and social benefits for the This is the first step in realising the creation of an innovative traditional and digital financial markets infrastructure in Cyprus."
Thomas Zeeb[/B], Global Head of Stock Exchanges and Member of the Executive Board of SIX commented: "We are pleased to work with the Cyprus Stock Exchange to provide the infrastructure required to implement the parallel listing of the Republic of Cyprus EMTNs on the Cyprus Stock Exchange on behalf of the Ministry of Finance and to strengthen the position of the Cyprus Stock Exchange. In addition, we look forward to continuing to work with the Cyprus Stock Exchange on the shared vision of implementing innovative solutions to optimise fundamental performance, maximise growth opportunities and create additional shared value."
Javier Hernani[/B], Head of Post-Trading Services (Securities Services) and Member of the Executive Board of SIX, added: "The implementation of this infrastructure project is an important step in the further development of our cooperation. Our connectivity and scale across global markets, our enhanced securities servicing model with the ability to design and implement customised solutions such as the one we have worked with the Cyprus Stock Exchange to implement parallel listing, demonstrate our ability to provide customised solutions for market infrastructure clients. Given our strong position in the global post-trade chain, we believe that this new partnership will increase shared value and support the Cyprus Stock Exchange's growth plan as an established strong infrastructure in the region."
The Mr. Marinos Christodoulides, Chairman of the Board of the Cyprus Stock Exchange commented: "We consider the creation of the infrastructure services for the parallel listing of the Republic's EMTNs on the Cyprus Stock Exchange as an important step towards leveraging SIX's global expertise in servicing initially government securities and at a later stage other securities, acquiring in-depth expertise and developing a comprehensive range of infrastructure for the provision of international services, thus consolidating the position of the Cyprus Stock Exchange, both domestically and across the region. We are delighted to work with a trusted partner and benefit from its global reach and the credibility of its innovation, which is key to the development of a major regional hub."
SIX:
SIX Group operates and develops infrastructure services for the Swiss and Spanish Stock Exchanges, for Post-Trading Services, Banking Services and Financial Information with the aim of increasing efficiency, quality and innovative capacity across the entire chain of Swiss and Spanish financial centres. In addition, SIX designs and implements customised solutions for market infrastructures and financial institutions around the world. The company is owned by its users (121 banks). With around 3,500 employees and a presence in 20 countries, in 2020 it had operating income of CHF 1.38 billion and a Group net profit of CHF 439.6 million.
Cyprus Stock Exchange:
The Cyprus Stock Exchange (CSE) is the operator of the Regulated Market and the MTF (Multilateral Trading Facility) Market in Cyprus under MIFID. It is also responsible for operating the Central Securities Depository and Central Securities Register of Cyprus and a securities settlement system which is eligible for Eurosystem credit operations. At present, public debt issued exclusively in Cyprus (Government Registered Development Notes and Government Bonds) is listed on the Regulated Market of the CSE and is registered with the Central Securities Depository and Central Securities Register of Cyprus. CSE has 32 local and remote Members and Participants in its Central Depository and Central Securities Register (including Custodian Banks). CSE is a Public Law Entity.
(MGS/IK)
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