Bermuda Stock Exchange traders were yesterday reeling from a $1.25 million trade in Bank of Butterfield shares -- one of the biggest single trades in recent memory.

The trade of 44,696 shares at $28.125 -- up $.125 on its last trade -- also helped the Exchange close up 3.93 points at 1160.05.

A spokesman for Bermuda Commercial Bank, which executed the trade said it was on behalf of a nominee company.

In other trades, the Bank of Bermuda, which reported a 28 percent increase in earnings on Thursday, increased $.125 to close at $22.75 on volume of 1,698 shares while its 9% subordinated notes fell by the same amount to close at $107.50 on volume of 10,000.

Bermuda Commercial Bank's meteoric rise stopped at $14.125 when it closed unchanged on volume of 100. In the only trade outside the banking sector, Argus was unchanged at $10.50 on volume of 505 shares. Full table -- Page 14.