protectionism by bringing joining fees for local trading members in line with those for exempted companies.

And while it will mean a substantial increase in fees, local companies have a remaining window of opportunity for the lower rate through the end of January.

The new joining fees for local brokers will rise 300 percent from $5,000 to $20,000. Local companies joining as broker/dealers and market makers will soon pay $30,000, a 50 percent increase in the current fee of $20,000.

There are, at present, a total of nine trading members, five of which are local companies, including the three local banks that originally owned and operated the Exchange exclusively. There is one listing sponsor.

Annual fees will remain unchanged at $5,000, as will the minimum net capital requirements for each trading member.

Six of the trading members are brokers and three, including Lines Overseas Management and units of the Bank of Bermuda and the Bank of Butterfield are broker/dealers.

The BSX has been inviting local firms to join for the last two and a half years, and has offered incentives including the grant of share options for those that joined in 1995, exclusive listing sponsorship rights up until August, and a deeply discounted joining fee.

The BSX said in a statement yesterday: "The rationale behind the increase for local companies is to create a balance between local and exempted companies, in light of significant developments at the BSX over the last two years, and the potential for listing and trading business in the future.'' CEO William Woods said, "The BSX is keen to remove the differential in fees between local and international companies and any perception of continuing protectionism that this may have created.

"The BSX has recorded many achievements over the past two years. In addition, the financial and other support of our existing members has enabled us to acquire a fully electronic trading and settlement system which has significantly increased the value of joining the BSX.'' The BSX has now listed more than 180 securities including more than 100 mutual funds and increased its market capitalisation to over $40 billion, with monthly turn-over in excess of $1 billion.

Three Bermuda-based international insurers have cross-listed on the Exchange (ACE Ltd., EXEL Ltd. and Mutual Risk Management Ltd.) The BSX has a joint agreement with CATEX international to start an electronic risk exchange in Bermuda; a partnership with FTSE International to launch a Bermuda Insurance Index to track the performance of the Bermuda insurance market; and, created a new web site, the Offshore Funds Network (www.offshore-funds.net), dedicated entirely to offshore fund information.