Ms Audette Exel, Chairman of The BSX stated "We are absolutely delighted to have received this form of recognition from the SEC. This is a milestone in the development of an international securities market in Bermuda and will greatly assist The BSX to expand its operations globally and to obtain the further international recognitions we need to do so."
Mr. William Woods, CEO of The BSX stated "We have done a great deal of work in the last year to lay the foundation for this recognition, which is vital to the long term growth of The BSX. This designation now puts us on an even footing with our major competitors in Ireland and Luxembourg."
As part of its drive for international recognition, The BSX has recently joined as an affiliate member of both the international federation of stock exchanges (known as the F.I.B.V.) and the organisation of international securities commissions (known as I.O.S.C.O.)
Background
This latest announcement compliments a six month period where The BSX has increased its market capitalisation by nearly $23 billion, or more than 20 times its year-end 1995 capitalisation.
Highlights include:
Admission of Nomura Securities (Bermuda) Limited, part of the world's largest securities house, as a Trading Member of The BSX
Secondary listing of the five Jardine Matheson Group companies
Insurance Listings
-- Secondary Listing of Insurance Giant Exel Ltd.
-- Secondary Listing of NYSE listed specialty insurer ACE Ltd.
Fund Listings
-- Fund Giant Invesco Lists India Growth Fund
-- Listing of the Bermuda managed Orbis Global Equity Fund
Developments
-- Addition of Mauritius to The BSX's list of "Recognised Jurisdictions"
-- Procedures to carry BSX Trading Data on Reuters Worldwide Information Network and Dow Jones Telerate
In existence for more than 25 years, The BSX is an international electronic securities exchange with a market capitalisation of more than $25 billion. There are currently 50 equity issues, 13 of which are international: 60 investment funds; and 9 debt issues listed. Trading is conducted via the Bloomberg Financial Markets System.
For further information about The BSX please contact Mr. William A. Woods at 1-441-292-7212 or fax on 1-441-292-7619 or e-mail at bsx@ibl.bm
17 October 1996
Editor's Briefing Note on the Rule 904 Resale Safe Harbor
An offer or sale of securities that satisfies the conditions of Rule 904 of Regulation S is deemed to occur outside the United States and therefore is deemed not to be subject to the registration requirements of the Securities Act.
Among the conditions of Rule 904 is the requirement that the offer or sale must be made in an "offshore transaction". Rule 902 (i) provides, in relevant part, that an offer or sale is made in an offshore transaction if the offer is not made to a person in the United States and, in the case of a sale to be effected on a non- U.S. securities exchange or market, the transaction is executed in, on or through the facilities of a "Designated Offshore Securities Market" and neither the seller nor any person acting on its behalf, knows that the transaction has been pre-arranged with a buyer in the United States. Rule 902 (a) provides that a Designated Offshore Securities Market is either one of the 17 non-U.S. securities exchanges and markets listed in Rule 902 (a) (1) or any other foreign securities exchange or non-exchange market designated by the Commission based upon its consideration of, among other things, the attributes specified in Rule 902 (a) (2).
In its application letter to the SEC, The BSX represented that it has each of the attributes set forth in Rule 902 (a) (2), and based on the facts presented to the SEC, the Director of the Corporate Finance Division has agreed to designate The BSX as an "Offshore Securities Market".