Bermuda Stock Exchange president and CEO Greg Wojciechowski sent these comments to The Royal Gazette following a Letter to the Editor yesterday from former MP Allan Marshall, criticising BSX-listed companies that have not disclosed financial details of recent acquisitions.

@EDITRULE:

The BSX Listing Regulations seek to strike a balance between companies providing important, timely information to the market so that investors and shareholders can make informed investment decisions on the one hand, while on the other working to create a regulatory framework that will encourage an environment where regulation is appropriate but does not become such a burden to managers of companies that it detracts them from focusing on the creation of shareholder value.

The BSX Listing Regulations have been designed on the basis of generally accepted regulatory standards, in particular they meet the standards of the World Federation of Stock Exchanges of which the BSX is a full member.

They have also taken into account and have been tailored to meet the needs, size and maturity of the Bermuda market.

The disclosure of a listed issuer?s material corporate activities is one of the key components of the BSX Listing Regulations and as such they have been designed to maintain a fair and orderly market and ensure that investors and the public are kept informed by listed issuers, and most importantly that immediate disclosure is made of any information that might reasonably be expected to have a material effect on the market activity in, or the prices of, listed securities

In respect of disclosure, the Regulations provide issuers with guidance thresholds that set a transaction?s materiality and thus trigger public disclosure of the details of the transaction.

That said, the thresholds set out stipulate the disclosure minimums of the details of the transaction. Of course, should a company wish to disclose more information, the Exchange fully supports and encourages such communication with the market and shareholders.

The implementation of modern market regulation in Bermuda is relatively new.

Over the course of the last 10 years, listed issuers have made tremendous strides in changing internal procedures to ensure compliance to BSX Regulations.

For example, increased disclosure of material events has ensured a greater flow and frequency of information to shareholders and the market.

The market today is more transparent and operationally effective than it has ever been.

While we are extremely pleased with the support from listed issuers and market participants in helping to create a more solid market foundation today, it is important to remember that the basis of regulation is to protect all users of the market and that regulation must be current and mindful of further market development.

Greg Wojciechowski