The signing of this MoU which is the continuation of the ten (10) year already successful cooperation of the two Exchanges in the context of the Common Platform, will offer to Cyprus Stock Exchange 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, as well as the advantage of upgrading the clearing of their Markets and Products. As far as ATHEXClear which a licensed EMIR Central Counterparty is concerned, this agreement will enhance its recognition as an international Clearing House and will facilitate potential new cooperation with other Southeastern Europe's Stock Exchanges. 

 

Mr. Marios Pilavakis, stated during the ceremony: "With the operation of the Common Platform we achieved over time economies of scale and synergies, and both Exchanges in full synchronization managed to be updated and adjust themselves according to the new radical and substantive requirements of the stock exchanges' environment in the EU. The two Exchanges are now examining the introduction of the first ETF (Exchange Traded Fund) in the Cyprus Stock Exchange in order to exploit opportunities provided by the institutional framework of Cyprus"

 

Mr. Socrates Lazaridis, CEO of the Athens Exchange Group, noted during his short speech: "We already have a ten years long serious and successful partnership with the Cyprus Stock Exchange, and today we establish the base for its expansion. We believe that with this cooperation we shall take one more step towards the strengthening of the institutional environment of our markets in order to give the enterprises the chance to exploit the great opportunity existing in Europe, for their financing through the capital markets over the next decade, despite the difficulties we all faced the previous years"

 

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

 

From left to right: Dimitris Karaiskakis, COO, Athens Exchange Group, Nondas Cl. Metaxas, CEO , Cyprus Stock Exchange, Marios Pilavakis, Chairman, Cyprus Stock Exchange, Socrates Lazaridis, CEO, Athens Exchange Group.

From left : Marios Pilavakis, Chairman, Cyprus Stock Exchange, Socrates Lazaridis, CEO, Athens Exchange Group.