Bermuda Stock Exchange

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Bermuda Stock Exchange

• The worlds leading offshore, fully electronic
  offshore securities market
• ABCO
• June 5th 2007

Greg Wojciechowski - President CEO June 2007
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Update

• BSX founded in 1971
• 400 listings
• Domestic volume 3.9 million shares valued at 120
  million
• Market Cap over 350 Billion

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The BSXs Mission

• To develop an efficient , electronic domestic
  capital market
• To develop the listing of Investment Funds and
  other International Securities
• To build the infrastructure to make Bermuda the
  worlds first truly offshore, international
  capital market

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Role of the BSX

• Primary Market - Capital Raising
• Secondary Market - Trading Facility
• Listing Centre
• Publication of Information
• Regulation
• Development of Financial Services in Bermuda

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Sound Legal Framework

• Bermuda Stock Exchange Private Act - 1992, 1996,
  1997, 2002
• Financial Institution under Schedule 3 of BMA Act
  1969
• Power to Make Regulations - subject to prior
  consent of BMA

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International Recognitions

• Full Member of World Federation of Exchanges
• DOSM status from US-SEC
• Registered Organisation - LSE
• Designated Investment Exchange - UK Financial
  Services Authority
• Approved Stock Exchange Australian tax
  authorities
• Recognised Investment Exchange The BMA
• Affiliate Member - IOSCO

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Regulatory Objectives

• Integral part of Capital Market
  infrastructure-National stock exchange
• Investor Protection - full disclosure
• A level playing field - a fair game

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Striking the Appropriate Balance

• Necessity
• Practicality

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General Principles

• The Listing Regulations reflect currently
  accepted international standards and seek to
  achieve an appropriate balance between providing
  issuers with access to the market at the earliest
  opportunity and providing investors both with
  certain safeguards and with sufficient and timely
  information for the purpose of enabling them to
  make an informed decision as to the value and
  merits of listed securities.

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Regulatory Philosophy

• Suitability
• Transparency
• Disclosure
• Equality
• Corporate Governance

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Domestic Listing Regulations

• Obligation to disclose all price-sensitive
  information
• Introduction of Disclosable Events
• Requirement for six month, unaudited results
• Disclosure of directors composite shareholdings
• Obligation to notify changes
• Introduction of Pre-emptive Rights
• No fee for first certificate or transfers and
  right to multiple certificates
• Two Way Proxies

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Key Stock Exchange Listing Requirements

• Ongoing Listing Requirements
• Regular Reporting (semi-annual and annual)
• Compliance with accounting standards (NA GAAP
  IAS)
• Disclosure of major/material events
• Disclosure of directors interests

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Stock Exchange Regulation is Evolving

• The stock exchange regulatory regime will always
  seek to find the delicate balance between access
  to the market by issuers needing and seeking
  capital while maintaining an effective
  regulatory framework based on market realities
  which ensure that key/core safeguards are in
  place so as to maintain market integrity and
  shareholder rights and protection.

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Bermuda Stock Exchange