BSX Reports Steady Growth In 2001

The BSX/RG Composite Index ended the year at 2689.28, up 17.27% over 2000 and ahead of the average annual return of 13.27%. Correspondingly local trade volumes rose from 6.7 million to 16.7 million, with a share value of $221 million.

The BSX International Crossing Market saw substantial growth in volume on a year on year basis, rising from 5.6 billion shares, with a share value of $230.2 billion in 2000 to 10.6 billion, with a share value of $436.2 billion in 2001, a robust 87.3% increase.

The number of listed issuers also rose in 2001, from 313 to 349. Included in the new listings were, LOM (Holdings) Limited, the first local company to list on the BSX Main Board in several years and MaxRe Capital, which joined the Exchange's International Secondary Market. There were also five new international BSX Mezzanine Market companies and some 29 collective investment vehicles listed in 2001.

A significant highlight for the year was the introduction in November of the Bermuda Securities Depository (BSD), the Exchange's fully electronic clearing, settlement and depository service. The implementation of an automated central clearing and settlement system completes the Exchange's operational build-out and punctuates the BSX's commitment to introducing and maintaining international securities market standards in Bermuda.

At the close of 2001 William Woods, who held the position of Chief Executive Officer at the Exchange for six and half years, stepped down and Bermudian Greg Wojciechowski assumed the role of President and Chief Executive Officer on 2 January 2002.

In making the year-end announcement, BSX President and Chief Executive Officer Greg Wojciechowski noted, "The Bermuda Stock Exchange is pleased to announce a steady increase in business for 2001. Like so many businesses, the tragic events of September 11th had a definite impact on our last quarter results however our sound business model, coupled with the strong marketing initiative already well in place by September, we were able report growth at year's end."

Mr. Wojciechowski went on to note, " During 2002 the Exchange's focus will be on the continued development of our core business areas and the completion of the implementation of the Bermuda Securities Depository. By year's end all of the domestic securities currently listed on the BSX will be depository eligible.

Trading volumes in the domestic market continue to show strength and with interest generated though our well established investor awareness programme "Own Your Share of Bermuda", we believe that this strength will translate into year-end results that will exceed those of 2001.

Our international crossing market grew significantly in 2001 and we have every reason to believe that this trend will continue. Meanwhile we will continue to support the development of the financial services industry to ensure that Bermuda's reputation and use as a the world's premier offshore business jurisdiction is maintained."

In closing Mr. Wojciechowski stated, " Under the leadership of Exchange's Chairman David Brown and with the continued support of our Council and the ongoing hard work and dedication of our management team and staff, I am confident that the BSX will continue to grow in 2002."