Bank of NT Butterfield & Son shareholders saw the price of their stock rise by 75 cents or nearly 5 percent after the company's chief executive officer announced the bank would be applying for an exemption from the 60/40 ownership rule yesterday.

The price of Bank of Butterfield's shares has been edging up since the whole 60/40 issue erupted once again in June. But yesterday over half a million dollar's worth of stock changed hands, and the price was pushed over the $16 mark.

Bank of Bermuda has seen the price of its shares soar to $36.50 after its president and chief executive officer brought the matter to the fore with controversial statements implying the bank could leave the Island.

Now Bank of Butterfield's price sees a rise from the $15 or so doldrums it's been in for months.

Yesterday Calum Johnston, chief executive officer of the Bank of Butterfield, reluctantly came forward and said his bank had also put its hat in the ring for an exemption.

He said: "We have long been aware that the Minister of Finance was considering the question of the 60/40 rule in a serious and logical way. We knew that he had appointed a committee to research the question and make a recommendation to him.

"We did not, and do not, believe that there is anything to be gained by our harassing the Minister by making public statements on the issue. We know that he will deal with the matter when he has the information he needs and has considered all the ramifications of a change to a policy of long standing.'' But Mr. Johnston added: "However since you ask, I am now prepared to tell you that the Minister of Finance is aware of the Bank of Butterfield's intention to apply for exemption from the 60/40 rule.'' The Bank of Butterfield was contacted on Friday after Finance Minister Eugene Cox said in the House of Assembly that the 60/40 rule was to be relaxed, but said it would not comment.

Mr. Johnston's statement comes after The Royal Gazette published a front page article in which William Woods, chief executive officer of the Bermuda Stock Exchange said that if Bank of Bermuda was to get the green light on exemption, other banks were likely to follow.

A total of 34,500 shares worth $560,625 changed hands in one day after the announcement. On Monday only 3,200 shares worth $15.50 changed hands.

The price of the shares has gone up $1.00 since last week, when the price of the shares rose by 5 cents or 0.33 percent and over 57,000 shares worth $850,000 changed hands. The bank's 52 week high is $18.75, its low $15.00. In January last year the Bank of Butterfield took a secondary listing on the Cayman Island stock exchange. The bank became a founding member of the Cayman stock exchange, but the 60/40 ownership rules have meant that the shares traded have had to be closely monitored.

Bermudians currently hold about 74 percent of the bank's stock, but this could change if granted an exemption.

Calum Johnston, CEO