BSX 2011 Year End Review Report
The Bermuda Stock Exchange [BSX] released their 2011 Year End Review Report, which said the total market capitalization of the BSX as at 31 December, 2011, [excluding fund listings] stood at over $341 billion of which approximately $1.4 billion represented the domestic market.
Total trading volume for the period was 6.5 million shares with a corresponding value of $25.3 million compared to 64 million shares with a corresponding value of $112 million for 2010. The RG/BSX Index closed the year at 1044.65 which is 9.2% lower than 2010.
As at 31 December 2011, 613 issuers were listed on the BSX. Included in the new listings were the Variable Note Programs of Compass Re and Tramline Re. T
he further listing of Embarcadero Reinsurance, Queen Street II, III and IV Capital, Golden State Re and the specialist exchange traded fund, CATCo Reinsurance Opportunities Fund raised the number of Insurance Linked Securities listed on the BSX to 25 with an approximate market capitalization of $3.73 billion.
There were 38 new collective investment vehicles, 4 international equities and 3 fixed income securities listed and 6 subsequent issues from listed issuers.
Noteworthy in 2011 were the listings of international issuer Annuity and Life Re (Holdings), two notes issued by African Minerals (UK), the rights offering of West Hamilton and the delisting of KFC (Bermuda) Ltd. 2011 also saw Prime Management Limited join the BSX under the membership category of Listing Sponsor.
The statement said, “Despite challenging times in the domestic capital market, 2011 will be remembered as a milestone year for the BSX in which the Exchange celebrated its 40th anniversary of operation: hosted the General Assembly of the America’s Central Securities Depository Association; brought the market capitalization of listed insurance linked securities to over $3.3 billion; was granted designated status under Canada’s Income Tax Act; and announced a strategic investment by the TMX group.”
The BSX said that although the Bermuda domestic capital market continued to “experience pressure as a result of global and domestic market conditions, BSX international listing business and in particular the listing of Insurance Linked Securities continued to gain momentum for the BSX and Bermuda.”
Commenting on the year, BSX Chief Compliance Officer, Mr. James McKirdy said “The year on year decline in listed securities from 807 in 2010 to 613 in 2011 was mainly the result of the delisting of over 200 equity derivative warrants. The Exchange saw net growth in Collective Investment Vehicles, International Fixed Income structures and Insurance Related Security listings.”
In making the year-end announcement, BSX President and Chief Executive Officer Greg Wojciechowski stated, “2011 continued to be a challenging period for the domestic capital market largely reflecting Bermuda’s general economic climate.”
He went on to note, “BSX listed issuers continued to perform, offering the services that have made them successful for many years while seeking operating efficiencies and instilling cost consciousness, a strategy that should serve them well.
“When and as economic conditions improve, domestically listed companies will begin to assess their capital needs for future development and the BSX is encouraged by the willingness of stakeholders to support both domestic and international sources of capital for this purpose which will ultimately lead to further secondary market participation by domestic investors.”
Discussing international business development, he stated, “The BSX ended the year on a very positive note, marking several important milestones. In 2011, the BSX celebrated 40 years of operation and securities trading.”
“In March, the BSX hosted, the General Assembly of America’s Central Securities Depository Association that brought nearly 100 industry professionals from all corners of the Western Hemisphere to Bermuda to discuss a variety of issues pertaining to the structure, operation and regulation of the world’s clearing, settlement and depository organizations.
“In respect of product development, the BSX continued to raise Bermuda’s profile in the global financial markets by clearly articulating Bermuda’s strengths in the creation, listing and capital market support for Insurance Linked Securities, such as Catastrophe Bonds.
“The BSX entered this market much later than its competitors and the results to date have been outstanding with over 25 listed issues and a market capitalization of over $3.3 bn. The fourth quarter saw the BSX being granted designated exchange status under Canada’s Income Tax Act and most notably the strategic investment by the TMX Group in the BSX and the TMX Group’s CEO joining the BSX Council.”
In closing Mr Wojciechowski said, “Although challenging, 2011 was an important strategic year for the BSX. I am delighted with the outcome of 2011 and must acknowledge the Exchange team who continued to work very hard to attract new business and positive attention to Bermuda and this dedication to the development of Bermuda’s capital market is being understood internationally and being rewarded through new business.
“The strategic investment in the BSX by the TMX Group opens an entirely new avenue for further capital market development and I am enthusiastic about where this may lead the BSX and Bermuda’s domestic capital market.
“I continue to have every confidence that the hard work that has been done in Bermuda to create and sustain a reputable and respected commercial and regulatory environment will drive the country forward, assist us in adding new lines of business and further elevate Bermuda’s position amongst the major global financial centers.”
