Athens, September 23rd 2015

Cyprus Stock Exchange (CSE) and Athens Exchange signed today a Memorandum of Understanding (MOU) regarding the prompt beginning of processes concerning the assumption from ATHEXClear (Athens Clearing House) - as a licensed EMIR Central Counterparty (CCP) - of CSE's Markets clearing.

The signing of this MoU is the continuation of our ten (10) year already successful cooperation in the context of the Common Platform. Provided that the two Exchanges reach to an agreement, this will signifiy the next phase of the cooperation that offers to Cyprus Stock Exchange the advantage of upgrading the clearing of their Markets and Products, as well as the opportunity to attract new investors and intermediaries since their markets and products will become more internationally recognizable with regard to their status of clearing and risk management.

The said initiative is expected to create significant economies of scale for the markets and participants and reduce their cost of adjustment to the new competitive environment of the European Union. In the same direction of economies of scale has been directed the already two (2) year cooperation of Sibiu Stock Excanhge (SIBEX) with ATHEXClear which provides remotely services as a central counterparty in the relevant market. CSE will be able to provide the aforementioned services without any cost of new infrastructure and functions for itself as well as for the Members that have already completed the relevant adjustments as ATHEXClear Members for ATHEX Markets

Within the directly foreseeable future, executives of ATHEXClear and CSE will mutually commence the implementation process of the said endeavor.
 

A few words about the regulations

The Regulation (EU) 648/2012 ("EMIR" ? European Market Infrastructure Regulation) has been adopted and implemented in Europe, already since 2013, after a decision of G20 aiming to protect the financial system from risks coming from OTC Derivatives as well as other transactions cleared via Central Counterparties (CCP).

As it has resulted from its implementation so far, EMIR has also served as the acceptable standard of efficient clearing-risk management model for domestic markets of financial instruments, i.e. ATHEX Securities and Derivatives Markets as well as the Alternative Market of Athens Exchange.
Therefore, Markets whose clearing follows this standard, apart from the reinforcement of their credibility, may easier attract investors and intermediaries of international scope.

At the level of post-trading infrastructures, another European regulation, Regulation (EU) 909/2014 (CSDR- Central Securities Depositories Regulation) which has been recently completed, concerns the harmonization of regulations concerning the operation of financial instruments' settlement and especially book entry securities, and also the harmonization of rules for the operation of Central Securities Depositories (CSDs) in the European Union.
For the first time, via the CSDR there are a common definition of the concept and the purpose the Central Securities Depository, harmonized rules of organization, operation and transparency, a single framework of preventive supervision, and also a procedure of licensing (EU passport) from CSDs regarding the provision of services remotely or via a branch, to issuers, Exchanges and generally infrastructures of other EU Member States.