Bermuda Stock Exchange
The Bermuda Stock Exchange, or BSX, first opened for trade in 1971. The BSX is an open market that is completely electronic, dealing with centralized settlement and daily trades. Three of Bermudas’ banking institutions form part of the Bermuda Stock Exchange ownership. It was changed to a limited liability company in 1992, with membership available to any international brokers that are able to meet the specific requirements of the Bermuda Stock Exchange. All regulations and requirements have been updated so interested parties are able to clearly understand the rules. The electronic system that regulates the BSX includes settlement services, depository and clearing services. The Bermuda Stock Exchange Listings for 2004 included American Safety Insurance Holding Ltd, HSBC Holdings and Aspen Insurance Holdings Ltd. Market manipulation and insider trading, were made criminal offences, by the Criminal Code Amendment in Bermuda, in 2004. These offences are punishable by $100 000 fines and market manipulations offenders are faced with five years in prison. Insider trading offenders will receive a $175 000 fine and seven year custodial sentence. The Bermuda Stock Exchange is regulated under the 1992, Bermuda Stock Exchange Company Act by the Bermuda Monetary Authority, also known as BMA.
Bermuda does not have capital gains tax, but does have other taxes in place, which makes the general myth that Bermuda doesn’t have any taxes, untrue. The economy of Bermuda is reliant on its tourism industry. Tourism fuels employment and income, through hotels, activities and the purchase of souvenirs and clothing. Yearly, approximately 400 000 tourists flock to this idyllic destination, and most of the accommodation options that are available to travelers are owned by locals. International business has also boosted the economy with the travel of businessmen and investments, which are supported by the Bermuda Stock Exchange.
The agricultural and industrial sectors are very small. The availability of mineral rich land that is suitable for crops is scarce. The minimal agricultural products, which are flowers, honey, dairy products, bananas, citrus fruits and bananas, are not enough to sustain the inhabitants and visiting tourists, forcing Bermuda to import almost 80 % of their food
products. The export of commodities comprises mainly of pharmaceutical products. Other imported products include animals, fuel, clothing, construction materials, transport equipment, chemicals and machinery.