The Cyprus Securities and Exchange Commission (CySEC) has launched an initiative to enhance the Cyprus Stock Exchange (CSE) in order to restore its role as a key driver of economic development in Cyprus.

A roundtable discussion on the topic, "Strengthening the Cyprus Stock Exchange," took place at CySEC’s offices. Various stakeholders attended and presented proposals aimed at revitalising investor interest, attracting new companies, and increasing the number of investment products on the CSE.

"A healthy stock exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term helps listed companies raise capital for their development. Especially in a small economy like Cyprus, it is crucial because it strengthens liquidity and creates opportunities for establishing new businesses, in addition to supporting the existing ones," CySEC’s Chairman, Dr George Theocharides, said.

CySEC Proposes Start-ups, Bonds, Tax Incentives

Among the suggestions were including shares from start-up companies, which could appeal to investors interested in dynamic and innovative markets.

Another proposal was the introduction of government bonds, as well as bonds from semi-governmental organisations or local authorities. Participants also recommended offering incentives, such as tax reductions, to encourage companies to list on the exchange, which would help improve liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term and diversify the securities available for trade.

"A healthy CSE can also play a role in the internationalisation of Cypriot businesses by attracting foreign investors and opening new markets for them," Theocharides added.

Proposing Financial Literacy and Tech Upgrades

Proposals also focused on boosting financial literacy and investor education to improve understanding of the stock exchange’s functions and investment strategies. The need for technological upgrades and infrastructure improvements at the CSE was highlighted, alongside the idea of collaborating with other international markets to attract global investors.

Additionally, marketing campaigns and events in collaboration with international financial organisations were suggested to promote the CSE and investment opportunities in Cyprus. Officials from CySEC, the Ministry of Finance, the CSE, the Fiscal Council, and other relevant bodies were present at the meeting.

CySEC Plans Budget for 2025-2027

Meanwhile, Theoharides addressed the Parliamentary Finance Committee during the 2025-2027 budget discussion, as reported by Finance Magnates. He thanked the government for supporting CySEC's work in maintaining financial stability.

Theoharides highlighted growing regulatory demands, digital transformation, and sustainable investments, noting an 11.8% increase in supervised entities. CySEC focuses on responsible market development, investor protection, and implementing DORA for improved cybersecurity. The commission's budget for 2025 is €17.5 million, mainly for staff and technology upgrades, with increased revenue expected from 2026.