rule, the Financial Times said.

But it points out that the government "has been careful to ensure some ongoing ministerial control of a sector it sees as vital to the community's future.'' Henry Smith, president and chief executive of Bank of Bermuda, told the FT his bank will seek a secondary listing in the US as soon as possible.

He said, "The listing on the Nasdaq stock exchange is the start of a new era for the bank. Once achieved we will be measured by financial analysts against the most successful performers in the financial services global market place.'' The survey said Bank of Butterfield expects it to be about a year before it is ready to list elsewhere and Bermuda Commercial Bank has no plans to list outside Bermuda. John Deuss, chairman and chief executive of BCB, is quoted as saying he believes his bank's shares are undervalued because they trade at a discount to their book value, while the other two banks trade at twice their book value.

E-Commerce The FT feels that Bermuda's ambitions to make e-commerce a third leg of the island's economic base have been modified.

It said: "Such ambitions have not disappeared completely, but now the focus is much more on a recognition that e-commerce will become an essential part of all businesses - both `old' and `new' economy, and whether they are based in Bermuda or elsewhere.'' Bermuda is described as having given itself an advantage by becoming one of the first places in the world to legislate for this new electronic marketplace.

Tony Nagel, chief executive of QuoVadis, is quoted as saying: "Bermuda and other offshore centres are focal points in the development of international e-business. Many local operations sit at the hub of business networks that extend around the world, dealing with high value transactions and confidential transfers of information.

"Use of a Bermuda certificate authority increases the overall security of our clients' businesses and reinforces their affiliation to their preferred offshore regulatory, legal and fiscal environment.'' Bermuda Stock Exchange Because the Bermuda Stock Exchange opens an hour before the New York Stock Exchange and closes later, members can cross trade international securities while Wall Street is closed, the FT said.

"The exchange has enjoyed a healthy and growing after hours trade, as the big Wall Street investment houses close out their programmed trades and balance their portfolios,'' it states.

The BSX's hopes to attract Asian issuers, by offering a window into North America from a complementary time zone, have not materialised. However the FT notes the BSX continues to experience a healthy growth in its total market capitalisation, from $122 billion to $148 billion last year, and its trading volumes.