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| CISX: Going global
| TAMARA MENTESHVILI
Chief executive, CISX |
A stock exchange exists in every major financial centre around the world serving their home markets and attracting international investment to their respective shores.
The Channel Islands are no exception now that they, too, have a stock exchange. The CISX provides both listing and trading facilities for Channel Islands and international commercial companies, investment funds (both open and closed-ended funds), specialist debt securities and Channel Islands depository receipts.
The ongoing success of the CISX is directly attributable to its members, which now total 33. It is the CISX members who provide the client network, the innovative product structure and first-class services, which in turn attract international businesses to the Islands. The facilities of the CISX are a natural adjunct to the services that its members provide. Increasingly, Channel Islands organisations that have joined as Category 2 Members, specialising in the sponsoring of investment fund listings, have expanded their businesses to include the sponsoring of other types of securities on behalf of their clients, thus changing their status to Category 1 Member. This illustrates how effective the CISX has been in broadening the scope of corporate activity for its members and how their respective businesses have benefited from membership of the CISX.
The CISX market continues to develop, with trading volumes and turnover steadily increasing. The shares traded are in closed-ended investment companies and trading companies, with transactions having the added benefit of full Crest settlement. The market authority has approved over 450 securities as of 31 May 2004, with the securities on the official list having a market capitalisation in excess of US$24 billion (excluding capital markets products).
Of the securities listed, two thirds are on a primary basis. These securities include a wide variety of legal structures including protected cell companies and limited partnerships. An interesting statistic is that nearly half of the securities on the official list are domiciled outside the Channel Islands, further demonstrating the international profile of the exchange.
The CISX is a stock exchange with a difference – it offers a professional and personalised service with flexibility and responsibility. Its key features, including consistency of response, swift turnaround of documentation, competitive costs and approachability of the market authority – who meet daily to approve listing applications – set it apart. Its differentiating features have made the CISX the exchange of choice for a growing number of international issuers. These features include user-friendly listing rules, consistency of response, efficiency and swift turnaround of documentation, competitive costs and the approachability and flexibility of the market authority who meet daily to consider listing applications. Ease of listing is a particular feature experienced by issuers, who have welcomed the market authority's pragmatic approach to disclosure requirements.
The CISX provides high visibility for its listed securities and sponsors through its web-site www.cisx.com. This service is in addition to the market data and prices distributed world wide through the CISX’s Reuters pages, .
recognition
The CISX continues to attract international recognition as demonstrated by the designation of the CISX by the US Securities and Exchange as a Designated Offshore Securities Market under Regulation s of the Securities Act 1933, the designation by UK Financial Services Authority of the CISX as a Designated Investment Exchange under the Financial Services Markets Act 2000 and recognition by UK Inland Revenue under Section 841 of the Income and Corporation Taxes Act 1988.
In 2003, the CISX became an Affiliate Member of the International Organisation of Securities Commissions (IOSCO), whose organisational aims include the setting and promotion of high standards of market practice. Membership of IOSCO is an important development and is a further endorsement of the exchange’s reputation as a stock exchange that operates within a regulatory structure of internationally accepted modern standards.
The exchange's high standards and credible track record goes some way towards explaining the growing acceptance and international recognition of the CISX. The CISX has been proactive in promoting its facilities and the advantages of the Channel Islands, attracting world-wide coverage with every milestone achieved and raising the profile of the Channel Islands in the process.
An important factor for quality issuers in choosing on which exchange to list their securities is the regulatory environment of the jurisdiction in which it operates. In this regard, the CISX is fortunate to have the support of the regulatory authorities in both Jersey and Guernsey. The Channel Islands are in the premier league of financial centres and continue to demonstrate their commitment to the highest of regulatory standards.
Business relationships are all-important to the exchange and international issuers may depend on an individual, focused service – an approach that is in keeping with the way business is done in the Channel Islands. The market authority is always willing to take the time to meet and talk to people and is flexible in meeting demands.
It is willing to work with each issuer to see how their product structure might fit into the exchange’s listing rules and, then, how the exchange might bring added value to the listing. It is an approach that will be maintained no matter how big the exchange grows.
The market authority understands the need for differentiation and innovation in a competitive marketplace and is well placed to meet the challenges of a demanding and diverse universe of product providers. The CISX will continue to build on its foundation values and will aim to continue to provide an unrivalled service for its members and their valued clients.
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