Bermuda Stock Exchange (BSX)

Bermuda Stock Exchange (BSX)

Investopedia / Sydney Saporito

What Is the Bermuda Stock Exchange?

The Bermuda Stock Exchange (BSX) is a stock exchange headquartered in Hamilton, Bermuda. The exchange got its start in 1971 and is one of the largest offshore electronic securities markets in the world.

The exchange is recognized by the World Federation of Exchanges, as well as by governments and exchange commissions around the world. The U.S. Securities and Exchanges Commission recognizes the BSX, as does the Australian government, the London Stock Exchange, and the Canadian Department of Finance.

Securities traded on the BSX include stocks from domestic and international companies, government debt, and insurance-linked securities.

The legal currency in Bermuda is the Bermudian dollar, which is pegged to the U.S. dollar.

Understanding the Bermuda Stock Exchange (BSX)

The Bermuda Stock Exchange promotes itself as an attractive place to list hedge funds, derivative warrants, equities, and investment fund structures. Its regulations for listing reflect a generally accepted international standard.

For example, the exchange expects all issuers to disclose relevant information to the public to allow investors to make informed decisions. The exchange also requires that the directors of an issuing company act in the best interests of security holders as a whole and treat all holders of securities fairly and as equals.

Generally, the BSX requires an applying issuer to have a sponsor that is either a listing member or trading sponsor of the exchange. When an issuer seeks to attain a primary listing on the exchange for equity securities, its sponsor must be a trading member.

The sponsor’s role is to ensure that the applying issuer receives guidance and advice that is fair and that the issuer completes the application fully, submitting all necessary paperwork and serving as a communication liaison to the exchange during the application.

Issuers Listed on the BSX

Listings on the BSX include a variety of both domestic and international companies. Domestic companies include three utility companies. These are Ascendant Group Ltd, One Communications, and Watlington Waterworks. The Bermuda Press is the only domestic publishing company listed on the exchange.

Other domestic companies listed on the exchange include Argus insurance group, Bank of N.T. Butterfield, Bermuda Aviation Services, and West Hamilton Holdings.

International issuers listed on the exchange include Zeno Capital Limited, HongKong Land Holdings, United Pharmaceuticals International, and Apollo Enterprise Solutions.

The exchange issues daily trading reports, available to the public electronically. These reports list the share volume and turnover on the exchange as well as the bid prices, asking prices, market capitalization, and other relevant figures of listed issuers.