The Bermuda Stock Exchange (BSX) is a fully electronic, offshore securities market. It lists over 625 stocks, offshore funds, and alternative investment structures. Its trading occurs on a rolling T+3 basis and uses the BEST Central Limit Order Book trading mechanism, which is tightly integrated with the Exchange clearing platform.
BSX is a for-profit fully electronic offshore securities market
The Bermuda Stock Exchange (BSX) is a fully-electronic offshore securities market located in Bermuda. It operates through a customized trading system called BEST (Bermuda Electronic Securities Trading). This system is fully automated and based on a central limit order book. This allows investors to trade in equity and fixed income securities on an equal basis. Trade information is then electronically distributed to Reuters and other key financial information providers worldwide. This helps to make the Bermuda Stock Exchange an efficient and transparent global market.
The BSX is a full member of the World Federation of Exchanges (WFE) and an affiliate of IOSCO. In addition, it is recognized as a Designated Offshore Securities Market by the US Securities and Exchange Commission (SEC).
It is regulated by the Bermuda Monetary Authority
The Bermuda Stock Exchange is a public stock exchange that is regulated by the Bermuda Monetary authority, which is also responsible for overseeing financial services in the island. The authority oversees banks and deposit companies, and uses a risk-based approach to regulation. The main legislation, the Bermuda Monetary Authority act, is periodically updated with new principles and regulations. The authority also supervises four banks: the Bermuda Bank, Bermuda Exchange, Bermuda National Bank and Bermuda Financial Services Authority.
The Bermuda Stock Exchange is a for-profit, fully electronic securities market that offers trading and listing services to domestic and international companies. The exchange trades stocks, depository receipts, insurance-linked securities, derivative warrants, and debt. It is a subsidiary of Miami International Holdings, a Bermuda corporation. It is a member of the World Federation of Exchanges and an affiliate member of the International Organisation of Securities Commissions. It is also recognized as a Designated Offshore Securities Market by the U.S. Securities and Exchange Commission and as a Recognised Stock Exchange by the United Kingdom’s HM Revenue and Customs.
It lists catastrophe bonds and insurance-linked securities
The Bermuda Stock Exchange (BSX) has listed over $1 billion of insurance-linked securities (ILS) and catastrophe bonds in the past year. These securities are instruments that help companies manage their risk by passing the risk of potential losses to investors. The most common type of ILS is a catastrophe bond, which is issued by an insurer as a means of managing exposure to natural disasters. Currently, more than a dozen different ILS funds are listed on the BSX.
The BSX lists a record number of insurance-linked securities and catastrophe bonds. The total value of ILS listed on the BSX is over $1 billion, and the number of ILS is expected to increase in the future. The Bermuda Stock Exchange recently implemented new insurance regulations that make it easier to form and list these instruments. More companies are expected to list these products later this year.
