The Cyprus Stock Exchange (CSE) announced on Wednesday the introduction of a market maker framework.
The new framework, the CSE explained, aims at “enhancing the liquidity of listed securities and fostering a more competitive and flexible stock market”.
In addition, this move is part of the CSE’s broader strategy for modernising its operations and aligning with international stock exchange practices.
“The market maker plays a particularly significant role in ensuring sufficient liquidity for the prices of listed securities,” the CSE said in its announcement.
This regulatory framework was officially published in the Republic’s official gazette on December 6, 2024.
To become a market maker, brokerage firms must submit an application to the CSE, following the procedures outlined in the new regulatory decision.
“Applicants must meet the legal requirements and regulations for obtaining and maintaining market maker status,” the exchange stated.
The CSE emphasised that all market makers will be closely monitored and assessed through its trading system and other supervisory tools.
“Their performance will be continuously evaluated based on specific criteria as outlined in the regulatory decision,” the statement explained.
The CSE also mentioned that this initiative aligns with its growth-oriented objectives.
“This project falls under our broader strategy for continuous modernisation and the alignment of market operations with international standards,” the CSE said.
What is more, the CSE stated that by introducing market makers, it aims to boost the trading activity of listed securities, making the Cypriot stock market more attractive to investors and promoting its growth.
“The infrastructure and regulatory framework for this initiative have been carefully prepared to ensure its successful implementation,” the exchange concluded.
