A new trading platform for hedge funds is being developed at the Bermuda Stock Exchange which will allow investors access to real time information 22 hours a day and six days a week.

PlusFunds.com is an innovative independent web-based trading platform that will use the services of the BSX, Standard & Poor's and Ernst and Young. The BSX will provide secondary trading in hedge funds for the first time in the international market.

S&P will generate daily risk reports on the funds, including value-at-risk, historical stress tests on hedge fund portfolios and concentration analysis.

Ernst and Young has developed an accounting engine that calculates the real time gross asset value and net asset value (NAV) of shares of the funds. This is based on valuations of trading positions of the funds provided by independent pricing sources and managers of the investment portfolios of the funds. So far 18 funds have signed up for the system, 13 of which are already listed on the BSX.

Joanne McPhee, corporate communications manager of the BSX, said, "PlusFunds needed an offshore environment to achieve this so it is not regulated by the Securities and Exchange Commission in the US. They chose Bermuda because they needed an offshore environment that is well regulated and recognised.

"The concept was launched in 1999 but the platform is not open for trading yet. We are still in test mode but we expect to start trading within the first half of this year.'' Hedge fund shares registered, cleared and settled in Euroclear and Cedel will be listed on the BSX in this web based market. Ms McPhee said: "As a result of the added transparency, real time NAVs and daily risk analysis the platform provides, accredited investors will be able to easily evaluate, monitor and invest in hedge funds in a more efficient and sophisticated manner.'' All the funds are based offshore and are available to non-US residents and tax exempt US institutions. Accredited investors can access the PlusFunds site free. More than 2,500 investors from around the world have signed up for the service. Accredited investors are individuals whose net worth is acknowledged as in excess of $1 million and institutions wishing to invest $5 million or more. Because of the geographic spread of investors, PlusFunds offers its service in ten different languages.

Investment portfolios of the funds are managed at the full and sole discretion of dedicated hedge fund managers. Neither PlusFund nor any of its affiliates has any relationship or affiliation with any fund manager. Neither do they participate in the management or operation of the investment portfolios of the funds.

All the parties involved believe the enhanced transparency of this system will be one of its major benefits. For some time there have been calls for hedge funds to create more transparency.

A statement from PlusFunds said: "Improved access, transparency, liquidity, standardisation and transferability enhances opportunities for more active investor participation globally in the hedge fund market place.''