first daily trading of local shares.

And the question on everyone's lips is -- will there be enough share transactions to justify the service? The Bank of Bermuda and the Bank of Butterfield are doubtful, but First Bermuda Securities says no-one will know unless it is given a try.

Mr. Jeff Conyers, vice-president of FBS, said: "There's probably not enough volume at the moment to justify what we offer. But nobody before has created an attractive product and gone out and marketed it to the public in order to increase volume.

"You cannot categorically say there's not enough volume until someone has gone out and tested it.'' Research indicated that investors were not happy with the current method of trading offered by the Bermuda Exchange, he said.

This involves representatives of Bermuda's three banks gathering around a table every Tuesday morning and drawing numbered ping pong balls out of a sack to see who bids first. The trading session lasts about five minutes.

"It is obvious from talking to different people that they want daily trading because they do not have sufficient access to the Bermuda Exchange through the banks,'' said Mr. Conyers.

"When they do get access, it takes three or four weeks sometimes to find out where they stand.'' The Bermuda Exchange had talked about improving its trading methods for several years but had done nothing about it, he added.

There are plans to incorporate the Exchange later this year with a view to attracting foreign companies and mutual funds to list.

But Mr. Conyers said: "It's all very well to say they are finalising plans for an international stock exchange but they have been saying that for the last 25 years ever since the Exchange was formed.

"It's not that difficult for the Exchange to have daily trading but there's been no incentive to do it. Nobody perceives there's a market and nobody's prepared to go out and create one.'' Sir David Gibbons, chairman of the Bank of Butterfield, said he did not believe there was enough volume to justify daily trading of local shares alone.

But the banks were committed to setting up an international stock exchange in Bermuda with the help of experienced foreign experts, he said.

"Well before the year's out, we hope to have an international exchange established which would, of course, trade daily and would include a number of overseas companies.'' The Bank of Bermuda's executive vice-president Mr. Bill Thomson said Bermudian investors, who traditionally hold on to their shares for several years, felt comfortable with the "ping pong'' method of trading currently in use.

"It's a fair method that's stood the test of time, even though it amuses people,'' said Mr. Thomson.

"The volume here wouldn't justify much more sophisticated trading methods, such as using computers. And I don't think daily trading will increase the volume of that market.

"Most Bermuda securities are quite closely held. People tend to buy them and sit on them for years. They look for long-term investments and not short-term trades.'' Mr. Bill Dolan, chairman of the Bermuda Exchange, who is also manager of investments at the Bank of Bermuda, said the local stock market was becoming less regulated, opening the way for firms like FBS to set up.

"It will be very interesting over the coming months to see if they succeed or fail,'' he said. "Only time will tell.''