Established in 1971, the Bermuda Stock Exchange (BSX) is now the world’s leading fully electronic offshore securities market, with a current market capitalisation (excluding mutual funds) in excess of $325 billion. There are 750 securities listed on the BSX, of which over 300 are offshore funds and alternative investment structures. The BSX has emerged as a market leader for the listing of Catastrophe Bonds with over 159 listed vehicles representing over 70% of the global issuances. Trading occurs daily, and settlement is on a rolling T+3 basis using BEST, the BSX’s central-limit-order-book trading mechanism, which is integrated tightly with the exchange’s clearing, settlement and depository platforms. The BSX’s technology partner is NASDAQ/OMX.
The success of the BSX lies in its innovative approach to new products and markets and its ability to offer a commercially sensible regulatory environment. The exchange specialises in the listing and trading of capital market instruments such as equities, debt issues, funds (including hedge-fund structures), derivative warrant programmes and insurance-linked securities, including catastrophe bonds.
The BSX, recognised by the U.S. Securities and Exchange Commission as a designated offshore securities market, is a full member of the World Federation of Exchanges and is located in an OECD member nation.
In recent developments, the BSX was granted Approved Stock Exchange Status under Australia’s Foreign Investment Fund taxation rules; Designated Investment Exchange status by the U.K.’s Financial Services Authority; and, in December 2007, was granted Recognised Stock Exchange status by the U.K.’s HM Revenue and Customs. In February 2008, the BSX was admitted to membership in the Americas’ Central Securities Depositories Association. In 2011, the BSX was recognised by the Canadian Ministry of Finance as a Designated Stock Exchange. Also in 2011, the TMX Group, operators of the Toronto Stock Exchange, made a strategic investment in the BSX.