Membership
 
An investment firm may become a Member of the Cyprus Stock Exchange (CSE) by applying to the Council of the CSE and by fulfilling the following requirements:

(a) It is an approved investment firm or may offer investment services in the Republic of Cyprus, according to Investment Services and Activities and Regulated Markets Law of 2017.

(b) It is authorised to execute transactions for clients in at least one of the financial instruments listed in Part III of the First Annex of the Law on Investment Services and Activities and Regulated Markets Law of 2017 (as amended)
 
(c) Has the appropriate technical infrastructure for the execution, clearing and settlement of stock exchange transactions, according to the stock exchange legislation. The Council of the CSE may give an exemption from this requirement, to an investment firm that operates in any other EU Member State and is a Member of a Stock Exchange in that State.

(d) Has a stockbroker representative as well as a clearing and settlement officer for stock exchange transactions, approved by the CSE.

(e) Deposit to the CSE a special bank guarantee for the amount of €50.000 plus a deposit of €100.000 at the settlement bank used by the CSE, if the member wants to become a General Clearing Member (GCM). In case the Member wants to become a Direct Clearing Member (DCM), it should maintain only a deposit of €100.000 at the settlement bank used by the CSE.


Further more, to become Member of the Cyprus Stock Exchange, the interested investment firm must submit to the CSE the application fees (see the following link http://www.cse.com.cy/en/Profile/pricing.asp - table II) as well as the following documents:

(a) True copy of the license given by the relevant competent Authority of the country in which it was incorporated, according to the Investments Firm Law - in case of a foreign investment firm, a confirmation from the Cyprus Securities and Exchange Commission or the Central Bank in case of a Bank, must also be submitted, confirming that the investment firm is approved according to the Law on Investment Services and Activities and Regulated Markets Law of 2017.

(b) Confirmation by a stockbroker and an officer responsible for clearing and settlement issues, both registered in the registry maintained by the CSE, that such persons are committed to serve full time and on an exclusive basis as stockbroker representative and clearing and settlement officer of the company (such persons are required to pass a written examination on the Law and Regulations of clearing and settlement, organized by a relevant committee of the CSE. The Council of the CSE may give an exemption from the written examination to persons employed by an investment firm that operates in any other EU Member State and is a Member of a Stock Exchange in that State, which has similar Law and Regulations of clearing and settlement with those of the CSE).

(c) A statement that includes:

(i) The names and other information of the members of the Board of Directors, the General Manager, the Secretary and the share holders that hold directly or indirectly, a percentage above 10% of the share capital or of the voting rights of the company.

(ii) The names and other information of any assistant(s) stockbroker representative(s) or any stockbroker representative(s)

(iii) The address at which the central offices of the company will be located or any other address in which the company is established or in which it will maintain its technical infrastructure.

(iv) Description of its equipment and other infrastructure relating directly or indirectly to the execution of orders.

(d) A responsible declaration signed by the chairman or a member of the Board of Directors, or a member of the Board of Directors and a stockbroker representative of the investment firm, which confirms that the applicant complies to its obligations arising from the Stock exchange legislation, as well as its intention to conform with any obligations result from being a Member of the CSE.

The Council of the CSE approves the application once it confirms that the applicant complies with all of the requirements that the Stock Exchange Legislation imposes and has the necessary technical infrastructure (this is confirmed by the relevant competent department of the Stock Exchange that inspects the applicants installations). The Council of the CSE may give an exemption from this requirement to an investment firm that operates in any other EU Member State and is a Member of a Stock Exchange in that State

The Council of the CSE, in its decision, has the power to impose conditions on the applicant.

In case the Council of the CSE accepts the application, the applicant will be responsible, within 30 days from the notification of the decision or within any other period the Council may decide, to act for its registration on the Members Register after it:

(a) Complies with any condition the Council may impose.
(b) pays the annual Membership fees

Procedure for Membership