Needlestack Technologies, a Larnaca-based financial technology company providing systematic trading signals and proprietary financial data to some of the world’s largest institutional asset managers, is seeking to help broaden Cyprus’ reputation beyond its established foreign exchange and contracts for difference industry.

Its recent achievement of ISO 9001 certification, awarded by NQA Cyprus, provides independent recognition of its quality management systems and operational standards, supporting its work with major international investment institutions.

Speaking to the Cyprus Mail, Sebastian Niehaus, CEO and Head of Quant at Needlestack Technologies, discussed the opportunities Cyprus offers international fintech businesses, as well as the improvements needed to attract more high-value companies and specialised professionals.

He highlighted the country’s international relationships, competitive business environment and regulatory framework, while calling for greater flexibility in employee benefits and stronger incentives to attract talent.

Niehaus also stressed the importance of closer cooperation between universities and businesses, greater investment in advanced research and the development of local expertise.

He believes institutional asset management could take Cyprus’ financial services sector to a new level, particularly if more funds make investment decisions on the island rather than simply registering there.

That shift, he argued, could generate wider demand for legal, auditing, technology and specialist financial services, while strengthening Cyprus’ position as an EU financial gateway between Europe and the Eastern Mediterranean.

CM: What advantages has Cyprus offered Needlestack, and what must improve for the country to attract more high-value fintech companies?

As a globally operating company, one of the key advantages Cyprus offers us is its strong international relationships and its ability to navigate a complex geopolitical environment. In a world increasingly shaped by international conflicts and political uncertainty, Cyprus provides a stable and internationally connected business environment. The country has developed a valuable sensitivity in its international communication and diplomatic positioning, which is particularly important for companies operating across multiple markets.

Another major advantage is the combination of solid infrastructure, a competitive cost structure and an attractive tax environment especially for technology companies. I believe the Cypriot government has understood a fundamental principle: companies first need to create value and generate profits before they can contribute meaningful tax revenues. Creating the right conditions for businesses to grow is therefore essential.

Looking ahead, I would particularly welcome greater flexibility in designing employee benefits, combined with more attractive tax incentives for employees. In a highly competitive international market for specialised talent, companies need more freedom to create innovative and rewarding compensation packages.

I believe Cypriot authorities could become even more decisive and effective. While everyone calls for less regulation, I see a greater opportunity for Cyprus to show Europe how to strike the right balance between strong regulation and the ability to act.

CySEC is a great example, continuously working to improve and adapt. Cyprus has the potential to demonstrate that effective regulation and business competitiveness can go hand in hand.

CM: How easy has it been to recruit specialised technology talent in Cyprus, and what skills gaps need to be addressed?

For us, recruiting specialised technology talent in Cyprus has been a very positive experience. We maintain strong relationships with Cypriot universities and have developed valuable connections within the local academic community.

For example, I regularly contribute to university teaching through guest lectures and teaching engagements. These relationships have helped us identify talented individuals and build a strong technological foundation for our company.

Cyprus has a promising pool of young, highly motivated and internationally minded professionals. However, I believe there is still significant potential to strengthen the connection between academic research and the practical needs of technology companies.

In particular, I would like to see further investment in PhD programmes, advanced research and closer collaboration between universities and the private sector. For companies developing sophisticated financial technologies, access to highly specialised research capabilities is increasingly important.

What makes me optimistic is that I know several young professors in Cyprus who are very aware of these challenges and genuinely motivated to address them. I believe this new generation of academics can play an important role in developing Cyprus into a stronger centre for technological innovation and applied research.

Ultimately, attracting talent is important, but developing and retaining world-class expertise locally is what will create sustainable competitive advantages for Cyprus.

CM: How does your ISO 9001 certification strengthen Cyprus’ reputation as a hub for international financial technology companies?

I believe Cyprus has the potential to become much more than a Forex and CFD hub. Institutional asset management represents a major opportunity, not only in terms of economic value creation, but also in strengthening Cyprus’ international reputation as a credible and sophisticated financial centre. Gaining recognition and trust among the world’s leading institutional investors would be a significant step forward for the country, and at Needlestack, we are already contributing to this development.

We provide financial data and investment signals to some of the world’s largest asset managers. Our technology is based on a concept we call Nervous Assets, which are assets that react to changing market conditions earlier than others, providing valuable signals for institutional investment strategies.

For the world’s largest asset managers, high quality standards are essential to building long term trust and ensuring consistent, reliable service. These institutions depend on partners who can deliver not only innovative technology, but also operational stability and consistent quality over time. Our ISO 9001 certification reflects our commitment to these principles and demonstrates that Cyprus can be home to sophisticated financial technology providers capable of maintaining lasting relationships with leading global institutions.

The next step for Cyprus should be deeper economic integration. When funds not only register here but also make investment decisions locally, they create demand for legal, auditing, technology and specialised financial services.

Cyprus is also well positioned to become an important EU financial gateway between Europe and the Eastern Mediterranean. This requires continued progress in international reputation, anti money laundering standards, legal certainty and access to specialised talent.

Forex helped Cyprus build its financial industry. Institutional asset management can take it to the next level. At Needlestack, we are already providing part of the data and signal infrastructure that this industry depends on.