The Cyprus Stock Exchange was established as a legal entity in the form of a public corporate body under the Cyprus Securities and Stock Exchange Laws and Regulations which were passed by the House of Representatives in 1993 and 1995, respectively. The first trading session on the Cyprus Stock Exchange was held on March 29, 1996.
The Stock Exchange currently operates a Regulated Market and a Market in the form of Multilateral Trading Facility ( the ‘Emerging Companies Market’), which operate under the Cyprus Securities and Stock Exchange Law and the Investment Services and Activities and Regulated Markets Law (MIFID). Main participants of the Stock Exchange are the Members of the Stock Exchange (brokerage offices), listed issuers and investors.
Additionally, in accordance with the Securities and Cyprus Stock Exchange (Central Securities Depository and Central Registry) Law, the Stock Exchange has the responsibility for the establishment and management of a Central Depository and Central Registry (CSD). Securities listed on the Cyprus Stock Exchange are registered in the CSD and also unlisted securities, whose issuer wishes the maintaining of the registry by the Cyprus Stock Exchange.
According to section 5 of the Securities and Cyprus Stock Exchange Law:
The prime objectives and competencies of the Stock Exchange and its related powers and duties, are:
- To take all necessary and as the case may demand appropriate measures for the development of the securities market, as well as to control and regulate transactions in securities.
- To provide the necessary facilities for the trading of securities and the issuing of an official price bulletin, to facilitate the execution of stock market transactions, to provide procedures and means for supplying stock market information relating to the movement and trading of securities, to provide for the prompt display of relevant data for the information of members, transacting parties and the public and finally to provide for publication of a stock market bulletin either daily or periodically as determined by a decision of the Council.
- To promote stock market activity and to use for this purpose every appropriate means of publicity regarding the benefits and the services of the Stock Exchange.
- To encourage an orderly and systematic securities market, to combat fraudulent and improper stock market transaction practices and to provide the due protection of investors and the public in general.
- To prepare and submit for approval the stock exchange Regulations necessary to achieve its objectives and to take every other action necessary for this purpose.
In addition to the Stock Exchange’s primary competencies as provided above, the Stock Exchange is assigned with any other functions, which customarily constitute the competence of a stock exchange, together with their related powers and duties.