The Cyprus Stock Exchange plans to create a small cap alternative trading market with less regulation, slated for launch in the middle of 2009, the bourses general manager said on March 03.
Launching a market designed along the lines of Londons Alternative Investment Market (AIM) would attract foreign investment, and encourage listings from small to medium-size companies in Cyprus, Nondas Metaxas told Reuters in an interview.
Securities Exchange Commission gave the bourse approval for the small cap market and state legal experts were writing draft legislation for submission to parliament.
"The new market will be operational within two months of the legislation being approved. We hope that it will be before the summer," Metaxas said. "We have the regulations ready, we have the software ready, we are just waiting for the regulatory framework to be approved by parliament."
Metaxas said companies in Cyprus, Greece and the Gulf previously had shown interest in a small cap market, in which there is less regulation and fewer requirements on free floats compared to the main trading market. Metaxas said the timing of the venture was slightly awkward due to the global credit crunch, but the bourse would not be put off.
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