This page includes Regulatory news filings supplied by issuers listed on the BSX. Please note the BSX is not responsible for the content, accuracy or completeness of announcements filed by issuers and disclaims all liability for any loss arising from reliance on information contained within issuer announcements.
BSX Declares BCL Shares Depository Eligible
This means that effective immediately, anyone holding BCL Shares may enter their holdings into the BSD through a BSD participant. BSD participants include, BSX Trading Members, banks, custodians and other providers of nominee account services.
As of Tuesday 27th May 2003, only BCL Shares that have been entered into the BSD system will be available for trading on the BSX. This means that anyone wishing to sell BCL Shares on or after this date will be required to deposit those shares into the BSD before initiating a sell order.
The introduction of the BSD, which began 30th November 2001, is being phased over several months. BCL's are the latest securities to be declared depository eligible. The Bank of N. T. Butterfield & Son Limited (BNTB) was the first, followed by LOM, Bank of Bermuda, KeyTech (Common Shares and Notes) and BF&M.
The BSX anticipates all Main Board and Small Cap companies will have become depository eligible by Fall 2003. In the meantime, all non-BSD eligible securities will continue to trade and settle as per current market practice.
The BSX likens the new system which €˜de-materialises' (replaces) share certificates to electronic banking; in much the same way that electronic banking reduces the need for physical currency, the BSD automates settlement and de-materialises share ownership replacing physical share certificates with electronic book entry records held in investor accounts within the BSD.
In short, the BSD makes it safer, quicker, easier and less expensive for shareholders to trade and monitor their investments.
De-materialising share certificates is a simple process, shareholders need only present their physical share certificates to a BSD participant, who in turn will arrange for them to be entered in a BSD account in either their name or that of a nominee. Once the position has been entered into the BSD the physical share certificates will be cancelled and replaced by book entry records which will be reflected in regular account statements from the participant.
The BSX advises that shareholders who do not plan to sell in the near term may continue to hold their physical share certificates for as long as they wish. However the BSX stressed that going
forward, anyone wishing to sell BSD eligible shares by way of the Exchange will be required to de-materialise their stock before any sale can be initiated.
The Exchange urges anyone with questions regarding BSD to contact the broker of their choice, or other financial institution, to discuss the matter further.