The Emerging Companies Market of the Cyprus Stock Exchange falls within the definition of a Multilateral Trading Facility (MTF) as defined under the scope of MiFiD II and relevant Regulations and operates in accordance with the Regulative Decisions of the Cyprus Stock Exchange. The ECM was established with the aim of enabling small to medium-sized enterprises to gain access to the secondary market, providing them with the benefit of growth and development.
Cypriot and international corporate entities have the opportunity to list their equivalent securities, such as shares or bonds, on the ECM. The ECM is not a regulated market, thus, its listing requirements do not entail the strict and rigid provisions found in MIFID II and applicable laws of the Stock Exchange, thus making it a more attractive trading platform.
ECM offers a wide variety of listing benefits to the potential investor as, amongst others, there is no requirement for the investor to satisfy a specified minimum market capital contribution to the investment.
The appointment of a Nominated Advisor (the 'NOMAD') is mandatory for the listing and maintaining of a corporate entity within the ECM. The role of the NOMAD is to monitor and supervise the activities of the corporate entity once entered into the ECM and to ensure that all listing requirements are fulfilled.
Listing may take place either via public offering or private placement depending on, amongst others, the nature and structure of the offering.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.