BSX hails progress as key ILS listing venue

09-01-2018

The Bermuda Stock Exchange (BSX) reinforced its position as the global leader and listing venue of preference for issuers of Insurance Linked Securities (ILS) over 2017, it claimed in its end of year statement.

“In 2017 the BSX built upon its position as the listing venue of choice for global ILS vehicles,” said BSX president and chief executive officer Greg Wojciechowski. “In addition, the significant increase in the number of international debt issuers illustrates that the market is clearly aware of the benefits of listing securities on the BSX and this is creating new opportunities for the Exchange and its listing sponsor community.”

He added that the accomplishments of the BSX to date and in particular this year’s results, were directly attributable to the hard work of a small, dedicated team of world class stock exchange professionals that manage and operate the Exchange on a daily basis. “The team clearly understands the important role the BSX platform plays in the development of the Island’s domestic capital market and in particular its regulatory role which ensures investor and market protection,” said Wojciechowski. “This and how all the pieces collectively contribute to the health and development of Bermuda’s economy.

“Furthermore, the team is committed to ensuring that Exchange remains a leader amongst its peers internationally by providing global capital market access and solid support for domestic market users.”

Commenting on the year, BSX chief compliance officer, James McKirdy said that in 2017 the BSX once again saw positive listing activity across most sectors. As noted, listing activity was particularly strong in international debt and insurance linked securities which both reached record levels.

International debt listings grew to 180 securities in 2017, up 55 percent from 116 the previous year with their nominal value growing from $2.0 billion to $4.6 billion.

According to McKirdy, the BSX saw the listing of a total of 103 new ILS securities in 2017, with a combined nominal value of $11.54 billion. This represents growth of 69 percent in terms of the number of new securities listed in the year and an 87 percent growth in the nominal value. At year end the total number of ILS securities listed stood at 227 securities with a total nominal value of $ $25.99 billion.

The BSX also said that 2017 saw the completion of a number of important projects within its technology group. These included upgrades to the trading and settlement systems, signing a new contract with Nasdaq for continued use of their technology and upgrades to the gateways used by clients to access the Exchange’s systems. IT Manager Ian Havercroft said: “Independent surveys of our infrastructure have indicated that the BSX aligns closely with the US NIST Cybersecurity framework and our overall security score is near the highest scores in our industry.

“Cybersecurity remains a priority at the BSX with continual improvements being made to all systems to fortify the Exchange’s protection. Cybersecurity remains one of our biggest concerns. 2017 saw a number of high profile global cyber security events, none of which affected the BSX, due to our robust defenses and user education, both key to avoiding disruption.”

Wojciechowski concluded: “2017 was another solid year for the Exchange as we continued to expand our global reach and develop our domestic market. The focus in 2018 will be continued expansion of our international outreach with a view to creating new strategic partnerships that will enhance the Exchange’s global reputation with the ultimate goal of deriving a sound return on investment for our shareholders. Domestically, we will continue to work with our members in a determined effort to support the domestic capital market by expanding our ‘Own Your Share of Bermuda’ investor education programme, initiating new and creative ways to expand and diversify share ownership and increase trade activity.”

Bermuda Stock Exchange, ILS, Insurance, Greg Wojciechowski, Bermuda

Bermuda Re