Bermuda Stock Exchange 0000-00-00 00:00:00
Sitting at the heart of one of the most dynamic, stable and well-respected economies in the world, the Bermuda Stock Exchange (BSX) is home to nearly 700 listed securities and has a combined market capitalisation of over $225 billion. Opened in 1971, the BSX operates a fully electronic market regulated by the Bermuda Monetary Authority (BMA). Being at the forefront of international standards of regulation and transparency has been a top priority for the BSX. In recognition of this, the BSX is a full member of the World Federation of Exchanges; a Recognised Stock Exchange of the U.K.’s HM Revenue & Customs; a Designated Offshore Securities Exchange by the U.S. Securities and Exchange Commission; and is recognised as a Designated Investment Exchange by the U. K.’s Financial Services Authority. What separates the BSX from its peers is its operational reliability, the unique nature of Bermuda’s economy, its geographical position and the streamlined regulatory regime in which it operates. Ideal Business Environment Located between North America and Europe, Bermuda is hailed as an economic Success story with a “solid track record of macroeconomic stability,” according to Fitch Ratings, at a time when other offshore jurisdictions are undergoing economic woes. Particularly renowned for its insurance industry, Bermuda is home to nearly 1,400 insurance companies with total assets of $442 billion and gross premiums of $142 billion, making it the third-largest insurance market in the world. Bermuda provides about 40 percent of U.S. and EU broker-placed catastrophe covers, and is now the most important offshore supplier of insurance, reinsurance and payer of property and casualty losses to the United States. To maintain the highest standards of international regulation and transparency, the BMA has strengthened laws for preventing money laundering and terrorism financing. An independent Financial Intelligence Agency has also been established to monitor and identify suspicious transactions. In 2009, Bermuda secured its place on the Organisation for Economic Co-operation and Development (OECD) “white list” after signing 18 tax information treaties. This is a recognition of the country’s commitment to tax transparency and established international standards. Also, the Insurance Amendment Act of 2008 became effective in October 2009, providing risk-based regulations for the establishment of special-purpose insurers (SPIs) as a new class of insurer within Bermuda’s insurance class system. This facilitates the structure of insurance linked securities (ILS), such as catastrophe bonds. The BSX’s regulatory approach has been embraced by the global fund industry, especially hedge funds, with investment funds making up around half of all BSX listed entities. Other securities include derivative warrants and fixed-income products. The Exchange’s global reputation for superior levels of regulation and transparency mean that nearly half of the funds listed on the BSX originate from other jurisdictions. Seamless Operations Trading on the BSX is executed through its customised trading system, BEST (Bermuda Electronic Securities Trading), an automated system based on a central-limit order book, allowing members to trade both equity and fixed-income securities on a realtime “first come, first served” basis. The BSX is also home to the Bermuda Securities Depository (BSD), which is Bermuda’s national securities depository. It is linked to BEST, creating an environment of seamless trading, clearing and settlement for BSX listed securities. With the global economy recovering from the international credit crunch, investors and companies are turning to stable jurisdictions for their investment and capital needs. The BSX, with its commended regulator, commercially minded regulation and cost-competitive structure, supported by a thriving financial sector and proximity to the North American and European markets, is the ideal environment for these needs.
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