Having started from ground zero in 1997 with the passage of the Stock Exchange Law, the Cayman Islands Stock Exchange has now generated its first profit.
To the financial year ended June 2005, it is projected that the CSX will generate a net profit of CI$120,000. This achievement in year eight of the CSX’s operations exceeds the initial target of breaking even within 10 years.
“This is a significant milestone for the CSX”, said CEO Valia Theodoraki. “But the important point is that we have every confidence that the Exchange will now go on to generate income at levels which will enable it in the near future to provide a solid contribution to the revenues of the Cayman Islands Government.”
“We have now achieved a major objective, and this is in large part due to the excellent technical expertise and response time of the very dedicated staff,’ said Chairman, Anthony Travers. ‘It is probably wrong to single out any particular members but we have been very fortunate indeed in having the services of Valia Theodoraki, our CEO, and Monique Melis, Head of Business Development.
‘And we must not forget to note the contribution of the recently retired Richard Crawshaw, Head of Listings and Financial Controller, who had been with us from inception.
‘We have now some $63 billion of market capitalisation in listed securities and there is no doubt that the international recognitions obtained by the Cayman Islands Government in its negotiations have secured the long term viability of the CSX. We should also recognise the great faith placed in the concept of a Cayman Islands Stock Exchange by the then Financial Secretary, The Hon. George McCarthy, without whose unfailing support over the past eight years and, that of his successor, The Hon. Ken Jefferson, we would not have achieved this notable benchmark.
“I would also like to thank my colleagues on the CSX Board for their expert contributions and the Deputy Financial Secretary, Miss Deborah Drummond, the project manager for the setting up of the CSX and Deputy Chairman of the Exchange from inception, to whom we all owe an enormous debt of gratitude for her tireless support and work in securing the international recognitions.
“I think that the regulatory balance achieved by the Cayman Islands Stock Exchange could well be used as a model by regulators in other jurisdictions, particularly those who feel that increased and irrelevant bureaucracy and red tape is an essential feature of the new financial landscape. The eight year history of the Cayman Islands Stock Exchange has been characterised by the comparative absence of any failures, scandals or investor losses, which shows that meaningful and informed regulation applied with the appropriate touch by experienced personnel is all that is necessary.’
The CSX is a recognised stock exchange under the UK Income and Corporation Taxes Act 1988. As a result, interest earned on securities listed on the CSX can now be paid without deduction of UK tax. The CSX is an affiliate member of IOSCO and the Intermarket Surveillance Group, a group of self-regulatory organisations committed to international cooperation for regulatory purposes.
Among its members are all US exchanges as well as many European, Canadian, Asian and Australian Exchanges.
In 1999, the CSX was the first offshore stock exchange to become a registered organisation with the London Stock Exchange.