The global economic downturn taken its toll on Bermuda-based companies during 2009 with share prices dropping and The Royal Gazette/Bermuda Stock Exchange Index closing the year almost 40 percent lower.

That is according to a report released by the BSX, which revealed that total trading volume fell from 7.4 million shares worth $101.5 million in 2008 to 5.7 million shares worth $50.9 million last year.

Meanwhile the RG/BSX Index finished 2009 down 39.35 percent at 2,072.41.

But during that time, the BSX's listing business has remained buoyant and the Exchange has made continued progress in entering and supporting the insurance linked security market.

The total market capitalisation of the BSX was more than $225 billion at December 31, 2009 (excluding fund listings), of which approximately $1.4 billion represented the domestic market.

On the same date, 670 issuers were listed on the BSX. Included in the new listings was the variable note programme of Montana Re and the common shares of Ram Re, underscoring the BSX's commitment to provide market support to Bermuda's insurance industry.

The Exchange also listed a further 11 international derivative warrants originating from a division of Calyon. There were also 55 new collective investment vehicles listed and five subsequent issues processed during the year, including the HSBC Holdings Rights Issue.

Noteworthy in 2009, was the placement of the country's largest ever initial public offer (IPO) with Butterfield Bank raising $200 million, largely supported by Bermuda-based investors.

The BSX's chief compliance officer James McKirdy said: "The BSX was delighted to support the operational requirements of the bank in seamlessly settling the IPO into the Bermuda market and providing an aftermarket trading platform through the BSX the day immediately following that settlement.

"In addition, we were surprised as were many at th "In addition, we were surprised as were many at the subsequent turnover of the issue in the aftermarket. This resolutely underscores that the domestic capital market works and that Bermuda based investors have an investment appetite for well-structured and regulated investment opportunities."

Last year, the BSX also made significant changes to its data dissemination capabilities by upgrading the backbone of its website, thus making additional data on BSX-listed issuers available, including a ticker feed of trading prices.

"2009 continued to be a challenging year in the global financial markets, said the BSX's president and CEO Greg Wojciechowski.

"Encouraging was the gradual thaw of the credit freeze and positive response in the world's equity markets, that said those supporting the capital markets still have work to do to ensure that fortified backstops exist to prevent a repeat performance of this market dislocation while remaining ever so careful not to create an regulatory environment which may stifle rather than nurture the sparks of innovation that will ignite future global economic growth.

"In respect of Bermuda, significant work has been undertaken by stakeholders to ensure that Bermuda's regulatory and operating infrastructure remains in line with international standards and changes are made when and where necessary to strengthen this foundation, firmly anchoring Bermuda's position as the premier offshore international fin