Booming domestic trading volumes, a composite index that has risen by 25 percent and an influx of new investment vehicles were the highlights of a year of spectacular success for the Bermuda Stock Exchange (BSX) in 2006.

A statement released yesterday by BSX president and chief executive officer Greg Wojciechowski said the year had been marked by an increase in interest in the Exchange, thanks in part to two important recognitions from financial authorities in the UK and Australia.

And this year the BSX team wants to find ways to increase investment opportunities for Bermudians in a domestic market that has been flourishing.

The Royal Gazette/BSX Composite Index ended the year at 4,860.32, up 25.1 percent compared with 2005. Domestic trading volumes increased from 2.9 million shares to 3.9 million shares with a corresponding value of over $120 million, one of the highest value turnover levels in the Exchange?s history. This comes on the back of a 21 percent

The total market capitalisation of the BSX at the year?s end (excluding fund listings) stood at over $350 billion, of which approximately $2.6 billion represented the domestic market.

As at December 31, 2006, 428 issuers were listed on the BSX, 66 more than were listed a year previously. Included in the new listings were Jupiter Adria Limited, an international equity issue and three international derivative warrant issues. There were also 22 new collective investment vehicles listed and 49 subsequent issues processed during the year, including the local BAS and BF&M rights issues.

In the second half of 2005, the BSX was granted both Approved Stock Exchange status by the Australian tax authority and designation from the UK?s Financial Services Authority.

The two designations, coupled with the strong international BSX brand and the recent consolidation activity in the global stock exchange industry, has resulted in a heightened level of interest in BSX products and the Exchange itself.

In making the year-end announcement, Mr. Wojciechowski noted: ?2006 has been a very exciting year for the BSX in terms of its strategic development. The receipt of the recognitions noted above has generated interest in the Exchange and further punctuated its role as the premier, fully operational offshore stock exchange.

?The BSX?s longevity in this business, its electronic infrastructure, its prudent regulatory approach and strong brand will position it well to take advantage of the exciting opportunities that are now presenting themselves in the quickly changing global stock exchange industry.?

Mr. Wojciechowski added that the BSX wanted to show renewed commitment to the continued development of the domestic capital market in 2007

?A tremendous amount of work has gone into modernising the BSX to ensure the increased flow of corporate information into the market, equal and fair access to the trading mechanism by all users and that the safeguards investors come to expect in modern regulated markets exist here at home,? he said.

?The BSX team feels strongly that this critical groundwork forms the foundation that supports a healthy domestic capital market, which in turn leads to the launch of new investment products.

?These products, whether in the form of equity participation in public companies, collective investment scheme structures, debt financing by either public companies or the Government, for example, will give Bermudians broader investment opportunities and provide them with the ability to fully participate in the success of the Bermudian economy through the capital market.

?The Exchange looks forward to meeting with stakeholders and policymakers in the upcoming year to assist in the creation of new opportunities for Bermudian investors, as we feel that the performance of the domestic market over the years clearly tells a compelling story which shouldn?t be overlooked.

?Records maintained by the BSX show that the local market has outperformed cash deposits in terms of total return since its inception in 1971, has outperformed cash deposits in every rolling 10 calendar year period since 1971, has outperformed both the S&P 500 and MSCI World ex-USA Indexes over the same period and the BSX continues to experience an increase in trading activity in real terms.?