’2016 Was A Very Positive Year For The BSX’

January 9, 2017

The Bermuda Stock Exchange [BSX] reported today that 2016 was significant for the Exchange citing its appointment to the Board of Directors of the World Federation of Exchanges [WFE], a record number of Insurance Linked Security listings and improving conditions in the domestic capital market.

In making the year-end announcement, BSX President and Chief Executive Officer Greg Wojciechowski stated, “2016 was a very positive year for the BSX, commercially and organizationally, with some very significant milestones achieved.

“We are particularly proud of the BSX’s appointment to the Board of Directors of the World Federation of Exchanges, the global association of exchanges and clearinghouses.”

“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, how the BSX platform is central to this and how all the pieces collectively contribute to the health and development of Bermuda’s 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 local market users.

“The dedication of the BSX team, its level of professionalism and understanding of our business was resoundingly punctuated this year when the BSX was appointed to the Board of Directors of the WFE.”

Commenting on the year, BSX Chief Compliance Officer, Mr. James McKirdy said, “2016 saw positive listing activity across most sectors including international equities, debt, collective investment vehicles and ILS. International debt listing activity was particularly strong growing by over 100% from 55 to 116 listed securities. As at 31 December the total number of listed securities stood at 753.”

“There were also a record number of new ILS listings, 61 in total, with a capitalisation value of $6.157 billion, including 7 new Variable Rate Note Programmes and 19 new Notes under established Programmes. In total, the number of ILS listed vehicles grew from 151 to 175 [a 16% increase], while the overall value of these securities grew from $19.21 billion to $21.22 billion [a 10% increase].”

“There were also 29 new collective investment vehicles, 2 international equities, 19 new derivatives and 74 fixed income securities listed along with 11 subsequent issues undertaken by existing listed issuers, including those of Butterfield Bank and Keytech.”

“De-listings included a number of ILS vehicles, international debt structures and Butterfield Bank’s 8% Preferred share class, all of which matured as part of the normal course of business.”

The RG/BSX Index closed the year at 1,923.79 up 47.52% over 2015.

Trading volume was up 31.75% year on year with a total of 8.2 million shares traded. Correspondingly share value ended the year at $48.6 million, as compared with $22.9 million in 2015, representing a 112.23% increase.

The BSD, the domestic Central Counter Party [CCP] and Central Securities Depository [CSD], continued to ensure orderly settlement of trades and processing of all domestic corporate actions.

At years’ end the BSD held 58% of all domestic listed securities in custody, up from 40% over last year. The BSX ended the year with a total market capitalisation of $343.8 billion, $2.5 billion of which represented the domestic market, up a notable 41.24% over the previous year.

The BSX said, “2016 also saw the initiation of a number of important projects within the technology group of the Exchange. These included the introduction of a new website and the enhancement of BSX cybersecurity.

“The new BSX website [www.bsx.com] replaces outdated technology and enriches site visitors’ experience with richer data content in respect of BSX information, its listed issues and trading members. Cybersecurity remains an ongoing priority at the BSX with additional security features added to all public facing systems to fortify the Exchange’s protection of its core systems.”

In closing Greg Wojciechowski stated, “2016 set the stage for what I believe will be a very exciting year for the BSX and Bermuda’s domestic economy. The green shoots of Bermuda’s economic recovery continue and the BSX will play its part to provide a nurturing environment for Bermuda’s economic recovery to accelerate.

“In 2017 we will, in conjunction with industry partners, relaunch our investor education programme, entitled “Own your share of Bermuda’. The aim of the programme is to stimulate renewed interest in the domestic market and investment opportunities available on the BSX, through an ongoing series of informative and educational platforms.”

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