The BSX was established in 1971 by The Bank of Bermuda Limited, The Bank of N.T. Butterfield & Son Limited, Bermuda Provident Bank and Bermuda National Bank, for the sole purpose of trading domestic securities.
In the early years, representatives from the banks would meet once a week on a Tuesday, at one of the banks and the order bidding would be determined by drawing three numbered ping bong balls out of a bag.
When trading commenced on 2nd February 1971 there were 33 companies, representing 35 securities, listed on the Exchange (both the Bermuda Telephone Company and Bermuda Electric Light Company also had debt issues listed).
After 30 years most of those companies are still listed on the Exchange, but others like Ambards and Hopping John are now longer in existence.
According to The Royal Gazette report published, 3rd February 1971 under the heading "Stock Exchange Opens In Cautious Mood", €˜asking prices were high and bids were definitely on the low side' however, two securities did trade on that first day, Bank of Bermuda at $14.50 and Bermuda Electric Light Company at $39.
Today there are 22 domestic companies listed on the BSX, representing 32 listed securities and last year alone more than 6.7 million securities, with a share value of $136 million dollars traded over the Exchange's now fully automated state of the art trading system €˜BEST'. The BSX now has a staff of 12 and there are 23 registered Members on the Exchange, including several major international companies.
In addition to the domestic securities market the BSX now offers a secondary market for International Bermuda domiciled companies, such ACE, XL, Tyco, the Jardine Group and MRM it has created the world's first €˜Mezzanine Market' for E-commerce and other High Tech companies and is considered by many to be exchange of choice for the listing of offshore mutual funds. In total there are now more than 320 securities listed on the BSX.
In 1999 the BSX was approved as a full member the prestigious International Federation of Stock Exchanges (FIBV) making Bermuda just one of 54 exchanges to have been so honoured.
Most of the Exchange's dynamic developments have occurred over the last 8 years, when the company was restructured as a €˜for-profit' independent entity. In 1993 full-time staff were hired and the first steps were taken to establish the world's first fully electronic, internationally recognised offshore securities market.