Issue 4 2021

Acquisition International - Issue 4 2021 35 Jan21040 Best Offshore Stock Exchange 2021 - Bermuda A globally recognized offshore securities market, The Bermuda Stock Exchange (BSX) offers a variety of domestic and international listing opportunities on a well-regulated exchange at affordable fees. We take a closer look at the firm as it celebrates fifty years of operation and success at the AI 2021 Global Excellence Awards stablished in 1971, The BSX has grown into a leading, fully-electronic, offshore securities market with more than 1,100 listed issuers, specializing in the listing and trading of capital market instruments such as equities, debt issues, funds and hedge funds, derivative warrants, and insurance linked securities (ILS). Uniquely positioned between the Americas and Europe, the two deepest capital markets of the world, Bermuda’s only stock exchange benefits from a time zone that offers real-time access to vast markets. Recognized by the United States Securities and Exchange Commission as a Designated Offshore Securities Market, The BSX is also a member of the World Federation of Exchanges, an associate member of IOSCO and is located in an OECD member nation. The firm has also gained its approved status around the world by financial institutions such as Australia’s FIF, the UK’s HM Revenue and Customs, Canada’s Income Tax Act, and more. The BSX is also a member of America’s Central Securities Depository Association. In 2019, Miami International Holdings, Inc. (MIH) obtained a controlling interest in the BSX and acquired full ownership by the end of 2020. As part of MIH’s global ambitions for the expansion of technology, derivatives trading and regulatory expertise to address emerging markets, the firm benefits from the Bermuda government’s commitment to fintech regulation and the country’s established reinsurance market. The growth of The BSX is due to its innovative, commercial approach centered on operational, technical and regulatory infrastructure serving clients with speed to market and affordable listing fees. The Exchange’s Mezzanine Listing facility is one such example of its pioneering approach, offering development stage companies a unique opportunity to list, and subsequently raise capital, on an internationally recognized exchange earlier than a traditional IPO. Whilst many of its issuers are based in Bermuda, The BSX also serves North America, the UK, Europe and Asia, as it witnesses growing interest from the global capital markets for an exchange platform for the listing of international debt instruments. Moreover, the introduction of the Special Purpose Insurance (SPI) class by the Bermuda Mone tary Authority in 2009 continues to proffer growth of the ILS market, with 93.5% of the global ILS issuance outstanding market listed on The BSX at the end of 2020. Among its many attractive qualities as an investment for institutional investor portfolios, certain ILS vehicles align with the United Nations’ Sustainable Development Goals (SDGs) due to their role in helping private and public organizations build resistance to natural disasters and climate change. The BSX is similarly moving towards a greater emphasis on sustainability, promoting its Environmental Social and Governance (ESG) principles on sustainability of listed issuers, engaging with stakeholders on the advancement of the mandate and establishing internal and operational processes and policies to support its efforts in sustainability. The movement towards better practices is driven by the people of The BSX, a small team that takes pride in the Exchange and its growth. The dedication and passion that is underpinned by market, regulatory and exchange knowledge as well as a culture of innovation has created a positive, transparent working environment that has been able to withstand the challenges of 2020. Moreover, the fully-electronic nature of The BSX meant that the firm was able to address business interruption with minimal impact on operations, which continued to be effective through a year of unusual market operation. As vaccines begin to be distributed worldwide and economies return to a new sense of normal, The BSX is entering its fiftieth year with continued commitment to the domestic and international capital markets. The BSX and MIH have major investments planned for the years ahead, beginning with the opening of new offices and training facilities in downtown Hamilton and substantial upgrades to the Exchange’s technology infrastructure. The BSX will also continue to promote its ESG principles on sustainability, as well as working to align its standards with the global harmonization of securities settlement standards following the ACSDA’ s on-site r eview in 2019. Ultimately, The BSX is looking ahead to another fifty years committed to the service and development of its sector, whilst simultaneously ensuring that The BSX remains one of the world’s preeminent offshore securities exchanges, and Bermuda the place where business happens. Phone: +1 (441) 292 7212 Email: [email protected] Contact: Greg Wojciechowski Company: Bermuda Stock Exchange Web Address: www.bsx.com E