Bermuda Stock Exchange (BSX) 0000-00-00 00:00:00
The Bermuda Stock Exchange (BSX) has seen a transformation during its 41 years of existence that has led it to emerge as an international stock exchange. Since the launch of the BSX in 1971, the operational and competitive landscape for stock exchanges has changed radically. Technology and globalisation have allowed financial capital to move freely across borders, and growing competition and lower regulatory barriers have spurred far-reaching transformations in the way securities are traded. Through all this, the BSX has kept up with the rest of the world, introducing electronic trading and dematerialised securities settlement (through the Bermuda Securities Depository) in the mid 1990s, and building a reputation as a regularly operating, effectively run exchange. In part, this reputation is based on the experience and stability of key management. So the BSX is well placed to capitalise on its unique status as a fully functioning stock exchange in the premier offshore financial centre. The Role of the BSX The BSX now has two complementary roles. On the one hand, it continues to be central to the Bermudian economy, providing an open, transparent and well-regulated market for buyers and sellers of securities issued by local companies. On the other hand, it is an international player that has enhanced Bermuda’s reputation as an international offshore jurisdiction; helped encourage more people to use Bermuda for international finance; and been at the forefront of new initiatives (such as the development of the market for Catastrophe Risk Bonds). On an international scale, the BSX has greatly enhanced Bermuda’s reputation as an international financial centre. The BSX’s s motto, “The world’s premier, fully electronic, offshore securities market,” is not just a marketing slogan — it is entirely accurate. The fact that the BSX has become a full member of the World Federation of Exchanges and a Designated Offshore Securities Market under the U.S. Securities and Exchange Commission’s regime also enhances Bermuda’s reputation — emphasising the First World standards that are prevalent in Bermuda but rare in many other offshore centres. Regulatory Environment Offshore financial centres as a whole have a reputation as tax havens, and some are accused of enabling tax evasion and money laundering. Bermuda is not one of them, and is widely understood to be essential to the world economy. In particular, Bermuda has become a key player in reinsurance and captive insurance markets. Bermuda offers appropriate levels of legal protection for financial privacy and provides regulatory competition to onshore jurisdictions, forcing onshore governments to evaluate and reform their own tax and regulatory policies. This role will be increasingly important in securities trading. As cross-border exchange mergers create multijurisdictional exchanges, there will gradually be a movement towards standardised securities regulatory regimes in those onshore jurisdictions. Bermuda, with its own well-established securities regulatory infrastructure — and its famous “light but effective” regime — will be able to provide a uniquely competitive environment for trading certain types of securities, such as securitised insurance products and “restricted securities.” The BSX has highly experienced and stable management. It is ideally placed to capitalise on the forces of globalisation that are driving exchange mergers and facilitating cross-border financial flows. Within the exchange universe it has one unique advantage: It is still the only fully functional offshore stock exchange, with electronic trading and settlement, and its own offshore, regulatory environment.
Published by HCP Media. View All Articles.
This page can be found at http://experiencebermuda.customtravelmags.com/article/Offshore+Securities/1031606/107406/article.html.