The Bermuda Stock Exchange' launch of its electronic securities depository made headlines in the Financial Times this week.

The article quoted Greg Wojciechowski, the exchange's president and chief operating officer as saying: "This is a natural progression for the BSX which, as a full member of the World Federation of Exchanges, is committed to meeting and exceeding international securities market standards."

The securities depository will automate settlement and dematerialise share ownership, replacing physical share certificates with electronic, book-entry records held in investor accounts, Mr Wojciechowski said in the report.

"This will make it safer, quicker, easier and cheaper for shareholders to trade and monitor their investments," he was quoted as saying.

In the article he said the use of central securities depository organisations and shorter settlement cycles has been universally accepted as helpful in reducing settlement and transaction risk, and making securities markets more efficient.

The article informed readers that the BSX was founded in 1971 and claims to be the world's leading fully electronic offshore securities market. Last year was a record for the exchange with overall trading volume in excess of 5.6 billion shares, representing a total share value of $230 billion adding total market capitalisation grew from $122 billion in 1999 to $148 billion last year.

It also added that the exchange, which is regulated by the Bermuda Monetary Authority, is bound by neither European Union listing directives nor US Securities and Exchange Commission regulations, although it was recognised by the SEC as a `designated offshore securities market' in 1996.

It added that The Bank of NT Butterfield has been selected as the first `depository eligible' security, and anyone holding BNTB shares will be able to enter their shareholdings into the securities depository through a participant: trading members, banks, custodians and other providers of nominee account services.