The United Kingdom?s Financial Services Authority (FSA) has granted The Bermuda Stock Exchange Designated Investment Exchange (DIE) status.

The independent regulator of the financial services industry in the UK granted DIE status to the BSX after reviewing the degree of protection the BSX offers consumers through its own rules and practices as well as the regulatory framework in which it operates.

Greg Wojciechowski, President & Chief Executive Officer said that the designation by the FSA is a crucial development in global regulatory recognition for the BSX.

?In addition to very closely scrutinising every aspect of the Exchange?s regulatory and operating infrastructure, including financial resources, investor safeguards and monitoring and enforcement procedures, the FSA had to be satisfied that the jurisdiction of Bermuda upheld internationally accepted regulatory standards,? Mr.Wojciechowski said.

?During the application process the FSA provided very useful input in respect of the development of our capital market and financial services regulation in Bermuda.

?We are very confident that the regulatory regime, which is the foundation of Bermuda?s financial services industry, is modern, efficient and completely in accordance with internationally accepted regulatory practices,? Mr. Wojciechowski added.

The FSA grants DIE status to provide give UK investors and their brokers a reference point for non-UK exchanges which, while not carrying on a regulated activity in the UK, have appropriate standards of investor protection. Under certain rules, UK authorised firms may treat transactions effected on a DIE in the same way as transactions on a recognised investment exchange.

Such transactions will attract a significantly lower position risk requirement and reduce costs. UK authorised firms may take advantage of exemptions under Rule 30.10 of the US Commodity Futures Trading Commission?s Rules and sell investments listed on a DIE to customers located in the USA.

BSX Chairman David Brown said: ?This very important designation is a significant development for both the Exchange and Bermuda?s financial services industry.

?This, and other international recognitions granted to the BSX, reflect the tireless work undertaken by the Exchange and Bermuda?s regulators to ensure that a regime of internationally accepted regulatory and operating standards are implemented and practised in Bermuda.?

The new designation follows closely on an announcement last month that the Australian Tax Authority had granted the BSX Approved Stock Exchange status under Australia?s Foreign Investment Fund (FIF) taxation rules.

The BSX is also recongised as a full member of the World Federation of Stock Exchanges, a recognised investment exchange by the Bermuda Monetary Authority, a designated offshore securities market by the US Securities and Exchange Commission, a registered organisation by The London Stock Exchange and an affiliate member of the International Organisation of Securities Commissions.