CYPRUS Law and Practice Contributed by: Kyriacos Scordis, Sofia Tryfonos Avraam and Anna Borovska, Scordis, Papapetrou & Co LLC
4.2 Material Shareholding Disclosure Threshold Disclosure requirements are triggered under of the Cyprus Securities and Stock Exchange Law in relation to securities listed in the Cyprus Stock Exchange at thresholds of 5%, 10%, 15%, 20%, 25%, 30%, 50% and 75%. A person must dis - close acquisitions or disposals to the issuer of the securities concerned, CySEC and CSE no later than the day following the acquisition, when the percentage of the person’s voting rights reach, surpass or fall below the above- mentioned thresholds. Similarly, in accordance with the Transparency Law, a person whose shareholding following an acquisition or disposal of listed shares with attached voting rights (listed in the Cypriot Stock Exchange or in any regulated market of any oth - er EU member state) reaches, surpasses or falls below thresholds of 5%, 10%, 15%, 20%, 25%, 30%, 50% and 75% of the total voting rights in the issuing company must notify the issuer, CySEC and CSE of such a transaction. Additionally, in accordance with the Takeover Bids Law, any acquisition which takes place dur - ing a takeover bid period by a bidder who holds 5% or more of the voting rights of the target company or the bidder must disclose details of the acquisition transaction to the target com - pany’s employees, its board, CSE, CySEC and make relevant announcement. Anyone acquiring 0.5% of the voting rights of the target company or the bidder must announce the acquisition and all subsequent acquisitions and their details. 4.3 Hurdles to Stakebuilding The main hurdles to stakebuilding are obtaining shareholder approvals from the target to accept the bid, securing the necessary financing before announcing the bid and obtaining the necessary
regulatory sector or activity-specific approvals. The minimum reporting thresholds specified under the applicable legislation must always be met. 4.4 Dealings in Derivatives Dealings in derivatives are allowed in Cyprus, provided the traders in such derivatives are licensed and authorised by CySEC, as well as in compliance with the relevant European and national legislation, EU regulations and the appropriate guidelines and recommendations by the European Securities and Markets Authority and the European Banking Authority as adopted by CySEC. 4.5 Filing/Reporting Obligations Cyprus transposed the provisions of the Markets in Financial Instruments Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 and amending Directive 2002/92/EC and Directive 2011/61/EU (recast) (as amended) (MiFID), with the Provision of Investment Ser - vices, Exercise of Investment Activities, Opera - tion of Regulated Markets and other Regulated Markets Law (87(I)/2017); the Markets in Finan - cial Instruments Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 (MiFIR) has direct applicability, with technical standards taking effect on imple - mentation. Pursuant to the MiFIR rules, there is an obliga - tion for market operations and licensed invest - ment firms operating a trading venue to publi - cise the prices and depth of trading interests of derivatives traded, on a continuous basis during normal trading hours, with transparency require - ments being calibrated on the basis of the trad - ing systems. Post-trade, market operators and investment firms publicise the price, volume and
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