Market infrastructure - Cyprus
Institutions and organisation
Stock Exchanges
- Cypriot Stock Exchange (CSE) (www.cse.com.cy)
The CSE is the primary stock exchange in Cyprus and operates under the supervision of the Ministry of National Economy.
Remote access to the CSE is provided to the members of the Athens Exchange S.A. (ATHEX) via the common trading and clearing platform between CSE and HELEX.
CSDs
Cyprus has a single central securities depository for corporate and government bonds, warrants, rights and equities listed at the CSE.
- Central Depository and Central Registry (CDCR) (www.cse.com.cy)
The CDCR is responsible for the clearing and settlement of CSE transactions, the administration of the Dematerialised Securities System that is known as Sistima Ailon Titlon (SAT) and acts as the central registry in Cyprus.
For both the Greek and Cypriot markets, OASIS is the electronic common trading and settlement system and SAT is the common clearing system. OASIS and SAT are both replicas of the respective Greek systems.
Since 10 December 2012, against payment settlement is carried out by the CDCR through TARGET2.
Regulatory structure
The following bodies are the regulators of the Cypriot Market:
- Ministry of Finance
The Ministry of Finance supervises the CSE. Effective 2 August 2010, public debt management responsibilities were transferred from the Central Bank of Cyprus to the Ministry of Finance, which has further assigned the duty to the CSE. - Cyprus Securities and Exchange Commission (CSEC) (www.cysec.gov.cy)
The CSEC regulatory role includes:- Supervision and control of the operation of the CSE and the transactions executed there;
- Supervision and control of the issuers of securities listed on the CSE;
- Inspections of companies whose securities are listed on the CSE, of brokers and brokerage firms, of investment consultants and of mutual fund management companies.
- Central Bank of Cyprus (www.centralbank.gov.cy)
The Central Bank of Cyprus was established in 1963. Since July 2002, it has been governed by Central Bank of Cyprus Law 2002, ensuring the Bank’s independence and compatibility with the relevant provisions of the Statute of the European System of Central Banks and the European Central Bank and the treaty that establishes the European Community.
The main functions of the Central Bank include:- Definition and implementation of monetary policy (including credit policy);
- Supervision of banks; and
- Promotion, regulation and oversight of the smooth operation of payment and settlement systems.