US investment advisory company FRMO Corporation has bought a 37.5 percent stake in the Bermuda Stock Exchange.

The Elmsford, New York-based company becomes the biggest shareholder in the BSX and its chairman Murray Stahl will be joining the BSX board of directors, the BSX said in a statement released today.

Mr Stahl is also chairman of Horizon Asset Management LLC, a registered investment adviser. A private-equity fund managed by Horizon Asset Management invested in the BSX in 2008 and currently holds 2.21 percent of the BSX’s shares.

This investment brings FRMO and affiliates’ commitment to the BSX to nearly 40 percent. The terms of the deal were not disclosed.

FRMO Corp had shareholders’ equity of $83.4 million as of May 31, 2013, according to its most recently published financial statements. In its profile on the Yahoo Finance website, the company is described as an “investment advisory and independent research company”, which “provides in-depth analysis of information-poor, under-researched companies, and strategies to identify the complex situations primarily for institutional investors”.

Among other major BSX shareholders is the TMX Group, operator of the Toronto Stock Exchange, which bought a 16 percent stake in late 2011. Capital G Bank and LOM Group are among the numerous other shareholders.

“We are very pleased to increase our ownership in the Bermuda Stock Exchange,” Mr Stahl said. “The BSX has invested heavily in its technology and global clearing alliances over the past few years making it a very attractive exchange for listing companies.

“Bermuda’s honoured legal and regulatory environment is time-tested, making it a very attractive country for offshore investors. We are committed to the long-term development of the BSX and the Bermuda Capital Markets.”

The investment comes at a time when the BSX is leading the world in the field of insurance-linked securities (ILS), such as catastrophe bonds, listing more than $4.6 billion of ILS in 2013, bringing the current market capitalisation of BSX-listed ILS structures to more than $10 billion.

BSX chief executive officer Greg Wojciechowski said: “The nature of stock exchanges has changed dramatically since the creation of the BSX more than 40 years ago. Exchanges are important fixtures of the global economy ensuring the free-flow of capital around the world while providing stable operating platforms at home at all times.

“The BSX has aggressively positioned itself as a leading global exchange by investing in technology, establishing regulatory excellence, achieving world recognition and focusing on innovation. Each step we have taken along the way has laid a solid foundation that has directly accelerated the growth and maturity of Bermuda’s domestic capital market.

“This investment by FRMO is a reflection of that value creation and the confidence of international investors in Bermuda and its economy.

“The Government of Bermuda has made positive changes to better enable foreign-direct investment in Bermuda businesses to accelerate growth in our economy and create jobs. This transaction is evidence that international interest in Bermuda exists, which could lead to new business opportunities.

“This development positions the BSX well for growth and catapults us even further onto the global capital markets stage at a time of incredible opportunity.”

Conyers, Dill & Pearman Ltd provided legal services for FRMO Corp.