Investors looking for new avenues to place their savings should give the Bermuda Stock Exchange some consideration,
Investors looking for new avenues to place their savings should give the Bermuda Stock Exchange some consideration, according to its president and CEO Greg Wojciechowski,
He is proud of the status of the stock exchange, which was established in 1971 and has kept pace with global developments and market changes and is currently the only offshore exchange that is a full member of the World Federation of Exchanges.
It was set up originally for the domestic market and this remains a commitment of the BSX, which can see the volume of trading fluctuate on a daily basis from a few tens of thousands of dollars up to $30 million or more.
Butterfield Bank is the biggest of the domestic companies listed. Other well-known Bermuda companies such as Argus, BF&M, Belco, Bermuda Aviation Services and Bermuda Press Holdings feature in the list of 63 members, which include secondary market trading by more than 30 international companies with an on-Island presence.
There is no Wall Street-style trading floor with traders shouting out prices because the BSX is wholly electronic. But it is modelled to international standards, which gives it a comforting familiarity for those accustomed to trading in places like the US and Europe.
"What people find is a model that they will understand, because it's the model used in London and New York. The only difference is it is of a scale relevant to the economy. And this is all underscored by the recognition the stock exchange has got," said Mr. Wojciechowski.
"To prove to the market and the international players the work we are doing in Bermuda is in compliance with international standards, we have gone out to get those recognitions over the years.
"At the same time we are very committed to providing support to the local economy. People would not have respect for us as a stock exchange unless we were making a positive difference to the domestic market. We believe there is opportunity for growth based on the past performance of the market and there are good opportunities for local investments."
The BSX market capitalisation grew 170 percent between 1995 and 2006 to $2.7 billion. Ten-year rolling average investment returns since 1971 for the BSX are 527 percent compared to just below 270 percent for the S&P 500 and MSCI World Index (excluding the USA).
Companies listed on the BSX enjoy exposure on business wires Bloomberg, Reuters and Bridge/Telerate.
Residents can tap into the potential to grow their savings by investing in domestic companies through the BSX.
The Index CEO said: "We have approved trading members in the BSX. If an investor is interested they should meet with a BSX trading member or broker who will sit down and talk to them."
The BSX is open to attracting more of the Island's pension fund investments into taking stakes in Bermuda's domestic companies, and Mr. Wojciechowski also sees no reason why the Bermuda Stock Exchange should not tap into the flight of smaller and mid-sized US companies who are listing outside the US because of lower compliance costs on overseas exchanges such as the UK's AIM.
Invest in BSX, locals advised
