BSX Releases 2013 Year End Review Report
The Bermuda Stock Exchange [BSX] said that 2013 was a “significant and positive year for the Exchange with accelerated momentum in the listing of Insurance Linked Securities and the successful upgrade of the Exchange’s trading engine to the NASDAQ’s X-stream platform.”
In making the year-end announcement, BSX President and Chief Executive Officer Greg Wojciechowski stated, “2013 ended strongly with a record number of ILS listings, well-supported and successful Bermuda Government bond listings and the smooth implementation of upgraded Exchange mission critical technology.
He added, “The accomplishments of the BSX to date and in particular this year resulted from the hard work of a dedicated team of stock exchange professionals that manage and operate the Exchange on a daily basis.
“The BSX team clearly understands the importance of a modern and solid domestic capital market and its contribution to the health of a domestic economy.
“The BSX team is committed to ensuring that Bermuda’s stock exchange platform remains the leader amongst its peers internationally while providing global capital market access and solid support for the continued development of Bermuda’s domestic capital market.”
Commenting on the year, BSX Chief Compliance Officer, Mr. James McKirdy said “Year on year listings grew by 32 securities in challenging global economic conditions. In particular, new listings grew by 81 securities including 42 Insurance Linked Securities with a capitalization value of $4.617 billion. There was also growth in International Equities and Debt listings while listings of Collective Investment Vehicles declined modestly.”
As at 31 December, 2013 there was a total of 665 securities listed on the BSX. Included in the new listings were several additional Variable Rate Notes and Programs from Armor Re, Galileo Re, Loma Re, MetroCat Re, Nakame Re, Sanders Re, Tradewynd Re and VenTerra Re.
The number of Insurance Linked Securities listed on the BSX grew to 77 from 38 [a 103% increase] while the value of these securities grew to $9.71billion from $5.81 billion (a 67% increase) from the same period last year. There were 19 new collective investment vehicles, 12 international equities and 4 fixed income securities listed along with 13 subsequent issues undertaken by existing listed issuers.
Noteworthy in 2013 were the listings of two new Bermuda Government Bonds, Blue Capital Reinsurance Holdings, Global Smart Cities, Polo Resources, Energy Solutions and the BIAS Global Portfolios. Delistings included several certificates from CLSA Financial Products and Alterra Capital Holdings following its merger with the Merkel Corporation.
The total market capitalization of the BSX as at 31 December, 2013 [excluding collective investment vehicle listings] stood at over $428 billion of which approximately $1.69 billion represented the domestic market. Total trading volume for the period was 10.2 million shares with a corresponding value of $50.1 million compared to 12.7 million shares with a corresponding value of $38 million for 2012.
The RG/BSX Index closed the year at 1201.05 which is 10.105% higher than 2012.
The BSX launched its NASDAQ OMX’s X-stream trading platform in April 2013 providing the BSX with world-class trading technology and strengthening the BSX’s commitment to the development of Bermuda’s domestic market while underscoring its ability to provide global capital market support in and from Bermuda.
NASDAQ OMX technology is used by over 70 marketplaces in 50 countries. Operating with X-stream technology, the BSX is the most powerful trading venue in the Caribbean and offshore markets as defined by performance, latency and throughput.
Discussing international business development, Mr. Wojciechowski stated, “The BSX ended the year on an extremely positive note. Two important developments were the continued growth in our Insurance Linked Securities listing business and the work that we have accomplished in supporting international Small and Medium Enterprise companies [SME] capital raising and listings.
“The BSX ended the year with a record number of ILS listed issues assisting Bermuda to firmly establish itself as a centre of excellence for the creation, listing and servicing of the ILS asset class. In respect of SMEs, interest in listing and trading in their listed shares remains on the rise.”
In closing he stated, “I am delighted with the place we find ourselves as we begin 2014 and have every confidence that the hard work undertaken at the BSX and in Bermuda to create and sustain a reputable and respected commercial and regulatory environment will continue to drive commercial development and assist us in adding new lines of business and further elevate Bermuda’s position amongst the major global financial centers.”
