The Channel Islands Securities Exchange (CISE) and Bermuda Stock Exchange (BSX) are exploring options for working closer together.
The exchanges have signed a memorandum of understanding to explore co-operation across both the commercial and regulatory aspects of their businesses.
Under the memorandum, the exchanges will look into ways of working together, including “cross-fertilisation of regulatory best practice, information exchange in relation to market developments, potential resource sharing and joint promotional activities”.
Greg Wojciechowski, president and chief executive of BSX, likened the memorandum to the proposed £21bn merger of the London Stock Exchange and Deutsche Boerse.
“This is a really exciting development for both exchanges,” he said.
“Larger exchanges have taken similar action seeking to create synergies through closer co-operation or even formal collaboration, such as is the case with the London Stock Exchange and Deutsche Boerse at the moment.”
While CISE is best known for listing investment vehicles, including open and closed ended fund structures, BSX has a full electronic stock exchange serving Bermuda’s domestic capital market. It is also known for supporting global reinsurance and capital markets through investment vehicle listings.
“I believe that there is significant scope for us to cooperate with similar exchanges as a way to harness synergies in our businesses and to that end, BSX is an ideal partner,” said CISE chief executive Fiona Le Poidevin.
“Our two exchanges differ in geographical location and market strengths so there is plenty of scope to leverage these complementary offerings in order for each exchange to diversify its product range and broaden its international appeal as a way to promote further growth.”