In Cyprus, STP has a whole new meaning: World’s retail FX center about to become major FinTech hub
The coincidentally named STP in Cyprus will likely pave the way toward a future of advanced financial technology for Cyprus
The entire FX and online trading industry is now so used to regarding Cyprus as not only a global center for retail FX brokerages but home to an entire ecosystem for the electronic trading sector, including prime brokerages, major platform providers, liquidity management companies, specialist professional services entities and regulatory technology and reporting companies.
The Eastern Mediterranean country has, not to put too fine a point on it, become a self sufficient focal point for all aspects of the FX business, and is home to a highly knowledgeable array of professionals whose understanding of the FX business from technology down to retail brokerage is absolutely first class.
Cyprus is not standing still or resting on its laurels, however, as it is now demonstrating aspirations toward becoming a global hub for financial technology, with proposals for the development and operation of the Science and Technology Park – rather conveniently abbreviated to STP which evokes connotations of FX brokerages using the agency execution model.
In March last year, the Cyprus Ministry of Energy, Commerce, Industry and Tourism began issuing invitations for tenders for the development of the technology park, and FX industry legal specialist AG Paphitis & Co, which specializes in the legal and professional services required to establish an FX brokerage in Cyprus, heralded this as an important development.
The Government of the Republic of Cyprus has stated that it supports the establishment of the Science and Technology Park (STP), as a basic infrastructure for the promotion of applied research, innovation and technology, including digital, information and communication technologies in Cyprus. It is considered as a basic tool for the promotion of entrepreneurship and smart specialization based on the above aspects.
An absolutely obvious move toward financial technology is apparent here, as Cyprus is now stepping up its mettle, and is attracting global interest from regulatory reporting and technology firms, hedge funds, institutional and listed derivatives firms from Chicago and London, and research and development companies.
Speaking to Paul Orford, Head of Institutional Sales at Cyprus based prime brokerage AMB Prime today, FinanceFeeds gained perspective on the industry sentiment on the development of Cyprus as a technology center.
Mr. Orford explained “Both myself and Andrew have discussed the growing technology eco system in Cyprus in our shows that we have done together. Geographically it is a great location with its access to the European Union. Furthermore, business owners can come here and invest in a solid infrastructure and become a part of the society very easily.”
“I would imagine that the government would also be offering favorable business conditions for them to thrive in” he concluded.
Indeed, with the array of international FinTech firms establishing offices in Cyprus, including oneZero, which recently opened an office in Limassol, and the presence of MAP FinTech, PointNine and Cappitech, there is certainly a highly advanced future ahead for the world’s most widely recognized specialist center for retail FX.