Tel Aviv Stock Exchange considers bid for Cyprus Stock Exchange

Tel Aviv, Israel. The Tel Aviv Stock Exchange, known in financial circles as “the Bursa”, is considering a bid for the Cyprus Stock Exchange (CSE), according to Israeli media reports.

Tender awaits approval

A source close to the finance ministry told the Cyprus Mail on Thursday that efforts to complete the private tender were “nearing a close” and required only the approval of Attorney-General George Savvides before proceeding.

The source said a purchase by the Tel Aviv exchange would give Israel greater access to the eurozone market.

The CSE holds a full operating licence in the European Union, along with its trading platform and clearing house, which confirms each trade after a deal is agreed.

Israeli media also reported that this foothold in the euro area was the main attraction for the Bursa, which intends to compete once the tender is published.

Differences in size

The CSE is relatively small, with an estimated value of between €20 million and €40 million. The Bursa is considerably larger, with a market value of about €3.5 billion.

Marinos Christodoulides, chairman of the CSE’s council, told the Cyprus Mail that new private ownership would benefit a market of its size.

He said a private owner would give the exchange “greater access to capital and grant businesses significantly more liquidity”, making shares easier for shareholders to buy and sell.

Regional ambitions

Christodoulides said the expertise of Israeli financial systems and stockbrokers would be an “invaluable asset to the exchange’s standing” if interest were shown.

Following the House’s passage of the privatisation law, he said the aim was to turn the exchange into a “competitive regional capital markets centre”.