Bermuda Stock Exchange, Stock Exchange of Bermuda

 

One of the world’s leading fully electronic offshore securities market, the Bermuda Stock Exchange (BSX) was established in 1971 as a domestic equities market.

The current market capitalization of the exchange (excluding mutual funds) stands at more than US$300 billion. Of the approximately 400 securities that have been listed on the exchange, nearly 300 are offshore funds and alternate investment structures.

The Bermuda Stock Exchange specializes in listing and trading of capital market instruments such as stocks, bonds, mutual fund (including hedge fund structures) and depository receipt programs.

The BSX has been granted approved stock exchange status under Australia’s Foreign Investment Fund taxation rules. On September 1, 2005 the exchange was granted designated investment exchange status by the United Kingdom’s Financial Services Authority.
The exchange’s significant growth over the last several years can be attributed largely to the company’s flexible and innovative approach. Trading on the BSX is executed through the exchange’s customized trading system, Bermuda Electronic Securities Trading (BEST). BEST is a fully automated arrangement based on a central limit order book, which enables trading members to deal in equity and fixed income securities on the ‘first come first serve basis.’ Trade information is transferred electronically to key financial information providers like Bloomberg and Reuters for worldwide distribution.

Another factor that has contributed to BSX’s success is its light but effective regulatory mechanism, which makes it conducive to new and innovative product listings. The country’s legal and regulatory environments have significantly evolved over the years giving the country an economic edge among its neighbors.