Trading on the BSX
The BSX operates a state-of-the-art proprietary trading, clearing and settlement system and also operates the Bermuda Securities Depository (BSD) where securities listed on the BSX are securely help on behalf of investors.
The BSX trading system, called BEST, links directly to investor accounts in the BSD and the BSX ensures that all trading has guaranteed settlement. This safeguards the efficient operation of the market.
Interested in becoming a member of the BSX? Please contact bsxops@bsx.com.
Types of Trading Members
BSX has three categories of Trading Members:
A Trading Member can trade on the BSX directly via its own access or via another Trading Member.
Trading Member Requirements
Before it can become a member of the BSX, a Trading Member must be:
authorised as an investment business either by the Bermuda Monetary Authority (BMA) or by a regulatory authority in another suitable jurisdiction.
have a minimum net capital in place which depends on the category of its Trading Membership and will be specified by the BMA or its regulatory authority.
have in place a settlement guarantee which ensures that its trades can settle on the BSX. This is determined by the Trading Member depending on its intended level of trading activity. Options for the settlement guarantee are outlined below.
demonstrate it meets the suitability requirements which include:
appropriate corporate governance and organisation structures
sufficient capital and financial resources to support its specified trading capacity;
Senior Executives with adequate knowledge, skills and experience of and in the securities industry;
adequate technical and operational systems and resources;
appropriate risk management, compliance arrangements, internal controls, policies and procedures;
appropriate compliance arrangements, policies, procedures and controls for the prevention of money laundering and terrorist financing;
appropriate complaint handling procedures;
appropriate insurance arrangements in place to cover risks inherent in the operation of its business;
suitable staff which are adequately trained and properly supervised
proper books and records related to its activities including client transactions and client assets.
Settlement Guarantee
A Trading Member is required to have a settlement guarantee in place with the BSX for the level of trading it expects to conduct on an ongoing basis. There are three options which can be one of or a combination of the following:
Information on the requirements of the Settlement Guarantee is provided in the Trading Member Regulations. Details on how the Settlement Guarantee is operated is provided in the BSD Participant Guide. Contact the BSX team on bsxops@bsx.com for more information.
Application to become a Trading Member
A Trading Member should complete a Trading Member Application Form and accompany their application with an appropriate fee. The BSX provides support and guidance to an application throughout the membership process. Any questions on the application or the requirements should be directed to bsxops@bsx.com.
Fees
Application Fee: $7,500
The same annual fee applies on a pro-rated basis from date of admission.
A Trading Member, which is also a Listing Sponsor, benefits from a combined membership rate as detailed in the Trading Member and BSD participation Membership Fee Schedule.
The are ongoing fees associated with trading on the Exchange and holding securities in the BSD. These are detailed in the Trading and BSD Transaction Fee Schedule.
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Questions or requests for information can be emailed to: info@bsx.com