2  Regulated Exchange of EU.  Cyprus has joined the EU since May  Cyprus has joined the Eurozone as of January  Cyprus, as an EU Member – state, can act as a bridge between the Exchanges of the Middle East area and EU, as far as harmonisation with legislation is concerned.  Potential is provided for the development of business among our capital markets, regarding issues such as cross-border activity and listings. Benefits can be obtained through economies of scale and synergies.

3 Supervising Body Securities & Exchange Commission Listing of Securities (127 issuers) Markets Equity Market Bond Market Products Shares issues Warrants - 10 issues Corporate Bonds - 15 issues Government Bonds & Treasury Bills - 42 issues Clearing & Settlement Processes Opening of accounts of investors in the Central Registry, Settlement of transactions, Clearing of transactions, Registration of securities holders in the Central Registry. Members of the Cyprus Stock Exchange, Custodians INVESTORS

(as at ) Average Daily Value Traded€ € Remote Members Share on the Value traded 4,93%6,00% Foreign Investors Shares Ownership9,80%10,38% Market Capitalisation: Shares€ mill.€ mill. Market Capitalisation: Total€ mill€ mill CSE General Index - Beginning of year1.101, ,32 CSE General Index - Year End1.597, ,35 CSE General Index Pch%44,98%-23,66% Cross Membership: 11 ASE Members operate as CSE Remote Members 9 CSE Members operate as ATHEX Remote Members Custodians: 14 Custodian Organizations operate at the CSE CSE MAIN STATISTICS

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6 Modern, well-functioning regulated securities market. Aims at operating as a regional gateway for investors in the Middle East, the Balkans region and the South and Eastern Europe. The CSE has state – of - the - art operational and legal framework, fully harmonised with EU Directives and international practices. The CSE offers all basic functions of securities trading (i.e. trading, clearing, settlement and registration, central registry). Simple listing procedures, competitive pricing policy, flexibility and effectiveness.

7  Listed companies on the CSE can benefit through: Access to international institutional funds. Access to Eurozone. MOUs have been signed with other Stock Exchanges in our region (i.e. Egypt, Athens, Bucharest, Malta,). Close ties with Amman Stock Exchange MOU with OJCS VTB Bank. Cyprus Stock Exchange has recently been successfully approved by the Federal Financial Markets Service (FFMS) of Russia

 Joint Platform with the Athens Exchange provide a wider range of products and services.  Remote Members in Cyprus (from Greece) and Remote Members in Greece (from Cyprus).  Operation of Custodians (International, Greek and Cypriot Custodian Banks) in the securities market of Cyprus.  European investors can buy and sell securities (shares,bonds) of all listed companies on the CSE, that are issued in Euro currency. 8

9 (A) Recently: (a)ECM (Emerging Companies Market) simple listing requirements, lower cost for companies. Provide wider opportunities to investors/market participants and assist companies to raise capital and be strengthened financially. (b) New competitive pricing policy, significant reduction in costs (c) New Joint Index with Athens Exchange on Banking Sector New Product (Future – Derivative) on this Index (in Athens Derivatives Market) (B) Projects Under implementation: New Tools for liquidity (i.e. Market Maker, Securities Lending) Over the Counter Trades (OTC) GDR’s (Global Depository Receipts) ETF’s (Exchange Traded Funds) Participation in Link Up Markets project. Participation in Target 2 Securities project.

10 RUSSIAN COMPANIES: List their securities on the CSE, that can be traded by Cypriot and Greek Members and bought /sold by international Institutional Investors. [Regulatory framework has been prepared for the introduction of Depository Receipts (GDR’s)]. To list Corporate Bonds in Euro currency, (that could obtain wider visibility by market participants and be traded by European Investors). RUSSIAN INVESTORS: Can invest in all Cypriot and Greek listed securities. Their investments can be handled in custody by a number of Custodians (International, Greek Banks) that operate remotely on the CSE (through their Athens’ branches, offices as well as by Cypriot Custodians - Banks).