Bermuda Stock Exchange Has Good 2001, Modifies Regulations

by Carla Johnson, Investors Offshore, London

22 January 2002

The Bermuda Stock Exchange (BSX) has reported a successful year in 2001, with the BSX/RG Composite Index ending the year at 2689.28, up 17.27% over 2000. Local trade volumes rose from 6.7 million to 16.7 million, with a share value of $221 million.

The BSX International Crossing Market saw substantial growth in volume on a year on year basis, rising from 5.6 billion shares, with a share value of $230.2 billion in 2000 to 10.6 billion, with a share value of $436.2 billion in 2001, a robust 87.3% increase.

The number of listed issuers also rose in 2001, from 313 to 349. LOM (Holdings) Limited was the first local company to list on the BSX Main Board in several years and MaxRe Capital joined the Exchange’s International Secondary Market. There were also five new international BSX Mezzanine Market companies and some 29 collective investment vehicles listed in 2001.

A significant highlight for the year was the introduction in November of the Bermuda Securities Depository (BSD), the Exchange’s fully electronic clearing, settlement and depository service. The implementation of an automated central clearing and settlement system completes the Exchange’s operational build-out and punctuates the BSX’s commitment to introducing and maintaining international securities market standards in Bermuda.

In making the year-end announcement, BSX President and Chief Executive Officer Greg Wojciechowski noted: “The Bermuda Stock Exchange is pleased to announce a steady increase in business for 2001. Like so many businesses, the tragic events of September 11th had a definite impact on our last quarter results however our sound business model, coupled with the strong marketing initiative already well in place by September, we were able report growth at year’s end.”

Mr. Wojciechowski went on to say: “ During 2002 the Exchange’s focus will be on the continued development of our core business areas and the completion of the implementation of the Bermuda Securities Depository. By year’s end all of the domestic securities currently listed on the BSX will be depository eligible."

The BSX has also introduced new regulations which will make listing on the Bermuda Stock Exchange easier and clearer. The Exchange said the new regulations updated exchange rules for its members and standardised the wording of listings.

According to the exchange, the most significant change is the introduction of a new section, Section VI, in the International Regulations, which has been designed to attract the listing of derivative warrants, a new market niche for the BSX.

BSX listings and compliance manager James McKirdy said: "The changes reflect input provided by members of the exchange and listed issuers over an extended consultancy period and experience garnered by the listings and compliance department during the last several years.'

C changes include a streamlining of the prospectus requirements for secondary listings of International Equity Securities (Section III). Under the new regulations issuers may submit their latest audited financial statements in lieu of a prospectus.
The exchange has also formalised the waiver for disclosure requirements, as previously granted by the listings committee on an ad hoc basis, for restricted market collective investment vehicles, as defined in Section IV, in respect to the disclosure of investments and shareholder holdings.

Recommended