yesterday as the exchange's new trading and settlement system went on line.

The new system gives the exchange worldwide information distribution capabilities, allows electronic trade confirmation and verification and gives BSX watchers the opportunity to see real-time pricing through Bloomberg L.P.

financial news service.

The "live'' composite Bloomberg screen, which displays BSX-listed securities, is updated as trades are completed.

"These changes lay the foundation for us to develop the world's first truly international, offshore securities market right here in Bermuda, for the benefit of all Bermudians,'' said exchange chairman Ms Audette Exel.

Exchange representatives were at the BSX's offices in the Washington Mall yesterday to mark the system going on line.

The exchange also celebrated the admission of the three new trading member firms, First Bermuda Financial Services, Lines Overseas Management and Matheson Investment Management (Bermuda) who join the Island's banks as trading members.

The new trading system is provided by Bloomberg and enables the exchange to disseminate its prices worldwide, provide electronic trade tickets to confirm trades made on the exchange, said Ms Exel.

The system will, in future, enable traders outside Bermuda to access the market, said Ms Exel, also the managing director of Bermuda Commercial Bank.

This is a "powerful price dissemination vehicle,'' said exchange CFO Mr. Greg Wojciechowski.

For the past three years, the exchange has used a Reuters price dissemination system.

Prior to the Reuters system, trading occurred manually with the three trading members, the Island's banks, meeting once per week.

The three trading members drew lots to determine the trading order.

The exchange recently announced five new non-bank council members: First Bermuda Financial Services Ltd. CEO Mr. Jeff Conyers; Appleby, Spurling & Kempe senior partner Mr. John Campbell; Belco Holdings Ltd. president and CEO Mr. Garry Madeiros; Mutual Risk Management Ltd CEO Mr. Robert Mulderig; and Sculley Brothers president Mr. Arthur Sculley.

Ms Exel said the exchange planned to widen the council further by bringing more members of the Island's business community on board.