The question is no longer hypothetical. As Cyprus sharpens its image as a destination for innovation, the Cyprus Stock Exchange (CSE) is quietly positioning itself as an untapped gateway for tech firms seeking both funding and credibility.

Speaking at the TechIsland Summit on May 15, Acting General Manager of the Cyprus Stock Exchange, Nicos Trypatsas, made a compelling case for how the local market can offer tech firms capital, structure, and long-term strategic advantages.

Trypatsas, who was appointed to the role in 2017 following a decision by the Council of Ministers, has been with the CSE since its inception.

He was, in fact, the first person ever hired by the Exchange back in 1994. Since then, he has overseen critical projects including automation, the creation of a central registry, remote trading, and cross-border depository links.

He also represents the CSE as a board member of the European Central Securities Depositories Association.

In his keynote session titled “Tech Meets the Market: Unlocking the CSE Advantages”, he outlined how Cyprus-based technology companies can leverage the Exchange not only to raise funds, but also to boost visibility and attract international investors.

A public corporate body regulated by CySEC and the Central Bank of Cyprus, the CSE offers two primary markets, the Regulated Market, which follows stricter criteria, and the Emerging Companies Market (ECM), with more flexible conditions tailored to younger or fast-growing businesses.

All operations, from trading to central registry functions, are fully automated and dematerialised, allowing seamless remote access.

What makes the CSE particularly relevant today is its evolving network of international links. It operates a common trading platform with the Athens Stock Exchange (ATHEX) and shares a similar central securities depository system.

It has also established investor links with the Swiss depository SIX-SIS, and issuer connections with Clearstream Banking, enabling smoother cross-border investment and settlement.

At the same time, the CSE is a member of key international bodies including WFE, FESE, ECSDA, ANNA and FEAS.

“The CSE is not merely a local institution,” said Trypatsas.

“It’s part of a broader European financial network, giving Cypriot tech firms an efficient and credible entry point to international capital.”

The numbers speak for themselves.

As of early May 2025, total market capitalisation across the Regulated Market and ECM stood at €25.6 billion, up from €23.5 billion the previous year.

Market capitalisation for shares on the Regulated Market rose from €5.7bl to €6.5bl, while the ECM saw growth from €5.7bl to €6.1bl.

Foreign ownership climbed to 54.6 per cent, up more than 5 percentage points in a year. Meanwhile, the CSE General Index rose from 215.37 to 239.11, a year-to-date gain of over 11 per cent.

Though average daily trade value dropped from €1.37 million to €646,000, investor appetite remains strong, especially among foreign institutions.

However, the share of trading by remote members fell significantly, from 23 per cent to just over 6 per cent, indicating potential space for improvement in international engagement.

For companies, the benefits of listing are tangible.

Beyond capital raising through IPOs or private placements, firms gain enhanced visibility, daily promotion, and added prestige.

Being listed can also support succession planning in family businesses, enable share offerings to employees or partners, and provide a transparent daily price mechanism for their securities. The CSE offers a low-cost environment for both initial listing and registry maintenance, making it accessible to growing enterprises.

In parallel, corporate governance frameworks required by the exchange contribute to long-term sustainability, helping firms put in place robust internal controls, transparent remuneration and appointment policies, and sound board structures.

This structure, combined with ongoing access to capital and investor interest, can offer a path to both local and regional expansion.

Transparency remains a cornerstone of the CSE’s model. Listed companies are required to publish semi-annual and annual financial statements and disclose any material developments, helping investors assess risk and performance with confidence.

Notably, the ECM has proven fertile ground for local growth stories.

Yoda plc, which joined in December 2022 with a capitalisation of just under €200m, has now surpassed €1.9bl.

Similarly, The Mall of Cyprus and MHV Mediterranean Hospitality Venture have both leveraged the platform to expand visibility and investor access.

On the Regulated Market side, companies like Logicom, Petrolina and Atlantic Insurance have steadily increased their capitalisation over time, a sign that the market can support both scale and stability.

Retail investors, too, are benefitting. The CSE offers access to shares, bonds, and collective investment schemes.

Portfolio diversification is made easier, and well-planned strategies can offer higher returns. In addition, the tax environment remains favourable.

Profits from securities sales are exempt from capital gains tax, no stamp duty is imposed on transactions, and non-residents are exempt from income tax and social contributions on dividend earnings.

Defence tax on corporate bonds has also been aligned with the government bond rate at 3 per cent.

Importantly, the CSE is already involved in Cyprus’ energy transition. It serves as the official auctioneer of greenhouse gas emission allowances on behalf of the Republic of Cyprus via the European Energy Exchange, and holds a 10 per cent stake in the Hellenic Energy Exchange.

It is also preparing to take on clearing and risk management responsibilities for the island’s competitive electricity market, a role expected to go live this year, in cooperation with the Hellenic Energy Exchange and ATHEX.

Looking ahead, the Exchange is focused on expanding its product offering, developing ESG-friendly investment options, and attracting new companies.

The privatisation of the CSE remains a strategic priority, with plans to bring in a strategic partner to further strengthen market development and deepen international cooperation.

At the same time, challenges remain. The impact of geopolitical uncertainty and evolving EU regulation continues to shape the market.

As Trypatsas noted, legislative changes often require rapid adjustment by both the Exchange and market participants, driving up compliance costs and forcing strategic realignment. Education for investors will be crucial, as will the adoption of digital tools and infrastructure to support innovation.

Technology companies in particular stand to gain. With growing investor interest in sustainability, transparency and innovation, the CSE is in a position to offer not just funding, but structure, visibility, and long-term positioning.

As Cyprus accelerates its digital transformation, the message from this keynote is clear. The CSE is ready to support the next generation of Cypriot tech companies, not only with capital, but with structure, credibility, and reach.

“Strengthening businesses in Cyprus – the Cyprus Stock Exchange is the tool,” Trypatsas concluded.