BNP Paribas Securities Services Athens has obtained further information and clarification on the process to be followed for physical securities (fixed income), OTC and on exchange trading as well as the associated costs. The Cyprus Exchange has confirmed.
As soon as the two parties have agreed on the trade details, the buyer will have to complete a form which needs to be submitted to the Cyprus Stock Exchange (CSE) and the Securities and Exchange Commission (SEC) within 24hours and before 10:00 am local time of T+1. Following the submission of the above mentioned document, both buyer and seller will have to jointly complete another document which needs to be submitted to the CSE. The securities need to be transferred to the special account of the seller within the dematerialised settlement system.
Physical Government Debt traded either on the Cypriot Exchange or off has settlement cycle of T+8, whereby cash is exchanged on T+3 and securities on T+8. In order to settle this transaction a specific document must be completed with information from both the buyer and seller and delivered to the CSE. The timeframe to deliver this document to the CSE is T+3. Concluding, we would like to inform clients that the CSE have confirmed that they will begin the dematerialisation of these physical securities in three months. All documents which need to be signed and sent by the investors to the CSE and SEC need to bear two authorised signatures with the Hague Apostile and proof that the person has the power to sign on behalf of the client.