BSX: “2015 Ended On A Very Strong Note”
The Bermuda Stock Exchange [BSX] said that 2015 was a solid year for the Exchange with continued momentum in the listing of Insurance Linked Securities and the further development of Small and Medium Enterprise company listings and a specialized international debt listing platform.
In making the year-end announcement, BSX President and Chief Executive Officer Greg Wojciechowski stated, “2015 ended on a very strong note with a record number of ILS listings. The BSX has emerged as the global leader in the listing of ILS structures, helping to punctuate Bermuda’s prominence as a centre of excellence for the creation, support and listing of global ILS vehicles.
“The BSX continued to work closely with the ILS market to provide more exchange support to this sector. The BSX made further progress in the listing of other asset classes, serving to prove that while a key financial services stakeholder within the Bermuda economy, the BSX is a firm contributor supporting the global capital markets.”
He added, “The accomplishments of the BSX to date and in particular this year’s results are directly attributable to the hard work of a dedicated team of world class 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 the Bermuda 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, “2015 saw a record number of new securities listed on the Exchange totaling 218 securities, including a record 58 Insurance Linked Securities with a capitalization value of $6.156 billion.
“Listings activity continued across most sectors including international equities, debt and collective investment vehicle listings. There was however a decline in derivative listings that occurred primarily due to a significant issuer repositioning its certificate product.”
“As at 31 December, 2015 there was a total of 681 securities listed on the BSX. Included in the listings in 2015 were 13 new Variable Rate Note Programs and 22 new Notes under established Programs. The number of Insurance Linked Securities listed on the BSX grew to 151 from 118 [a 28% increase] while the value of these securities grew to $19.21 billion from $15.91 billion [a 21% increase] from the same period in the previous year.”
“There were also 62 new collective investment vehicles, 6 international equities, 52 new derivatives and 40 fixed income securities listed along with 5 subsequent issues undertaken by existing listed issuers.”
“De-listings included several Insurance Linked Securities that matured during the year in the normal course of business and some 222 CLSA certificates.”
The total market capitalization of the BSX as at 31 December, 2015 [excluding collective investment vehicle listings] stood at over $349 billion of which approximately $1.77 billion represented the domestic market. Total trading volume for the period was 6.3 million shares representing a corresponding value of $22.9 million compared to 12.5 million shares with a corresponding value of $37.4 million in 2014.
The RG/BSX Index closed the year at 1304.06 which is 3.91% lower than 2014. In 2015, trading volumes and values in local securities continued to feel the drag of local economic conditions. BSX main board constituents experienced continued erosion in their share price, directly correlated with the year on year decline in the RG/BSX index from the beginning of 2015.
The Bermuda Securities Depository [BSD] continued to provide service to the domestic market ensuring that settlement and corporate action processing was completed effectively and efficiently. 2015 is marked by a steady increase in the use of the system as local shareholders realized the benefit of holding their positions electronically. The BSD currently holds 40% of the total shares issued and outstanding in the local market, in comparison to 20% 10 years ago.
2015 also saw the initiation of a number of important projects within the technology group of the Exchange. These included: the completion of an enterprise system upgrade to the latest version of the NASDAQ/OMX trading and operations platform; a cyber security review project; and preliminary work on a revamped website to deliver a more efficient and comprehensive visitor experience.
In closing Greg Wojciechowski stated, “I am delighted with the place we find ourselves as we begin 2016. The BSX team is energized and sees a variety of new opportunities on the horizon.
“I 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 the Exchange’s commercial development and assist us in adding new lines of business and further elevate Bermuda’s position amongst the major global financial centres.”
