The Bermuda Stock Exchange (BSX) is firmly on the radar of several top rival offshore jurisdictions.

The BSX features highly in the FTSE Global Markets latest report about Offshore Exchanges: Gaining a Competitive Edge, as does the global credit crisis and other such hot topics.

The report also includes countries like Luxembourg, Dublin and the Channel Islands, against which the BSX is compared.

Greg Wojciechowski, president and CEO of the BSX, said he would be watching the developments caused by the world-wide credit crunch with great interest because typically when the global capital markets are under pressure there is a slowdown in new products hitting the market.

"If this happens for products such as hedge funds, synthetic derivatives products such and structured products, it may put pressure on our international listing product," he said.

The study predicts that structured investment vehicles will remain under pressure given the spate of bad publicity which has dogged them over the past six months, against which shifting and uncertain background, stock exchanges will have to prove their worth in what is already a crowded field and where competition will only intensify.

Moreover, the report claims, offshore exchanges are keen to gender investor confidence by ensuring that they meet all of the international standards and garner the appropriate recognitions, citing the BSX's successful application to join America's Central Securities Depositories Association (ACSDA).

"It emphasises that the BSX and Bermuda operate a modern clearing, settlement and depository service, thus underscoring that it is a mainstream exchange, rather than a listings exchange service provider," said Mr. Wojciechowski.

"The BSX will bring a new angle to ACSDA as we are a relatively new exchange, a new capital markets region and will have a different or unique perspective that more traditional national exchanges and clearing entities may have."

The article said that all of the offshore jurisdictions agreed that the way to remain competitive and generate sustainable revenue is to not only cater for their domestic clientele, but also to build on their international presence.

"I do not see anything structurally different between the BSX and our onshore counterparts," said Mr. Wojciechowski.

"The foundation of the BSX is based upon the same fundamental regulatory and operational principles as those of onshore markets.

"Our function and responsibility in respect of the domestic capital market is the same (regulation, investor protection, capital raising, aftermarket and operational support services).

"The differentiating factors that place the BSX in a unique position of importance and will continue to make it relevant on the global stock exchange landscape are Bermuda's geographical position between two of the world's deepest capital markets; a robust and progressive insurance market, its unique and internationally recognised regulatory framework and a fully deployed electronic exchange platform capable of supporting the trading of international securities."

But, according to the report, Luxembourg and Dublin believe they have the upper hand on Bermuda because they are subject to the same long list of European Union rules and regulations that provide investors with extra comfort.

Bermuda also plans to take full advantage of its designations from the UK's FSA and HMRC, continued the survey.

"Both designations are exteremely important for the BSX and for UK market participants and issuers," said Mr. Wojciechowski.

"The designation from the FSA speaks to the acceptability of the regulatory regime of the BSX. In relation to the HMRC, BSX recognition should be of particular interest to the global debt and structured finance markets in addition to PEPs and SIPs in the UK."

Future plans for the BSX this year include the development of a number of services such as its Mezzanine Market - a pre-initial public offering listing for fledgling, high growth potential companies, and to expand its listing business across the asset class range of hedge funds, debt, euro-debt and structured products and synthetic derivative products, as well as playing a part in supporting the convergence of the insurance and capital market industries in Bermuda and providing an aftermarket for products created out of it, the report concluded.

l Bermuda is top of the pile when it comes to foreign currency bond ratings.

That is according to Moody's Investors Service, who, in its annual report on rival jurisdiction the Cayman Islands, said Cayman had retained its 'Aa3' foreign currency bond rating - the second highest in the Caribbean behind Bermuda.