GEORGE TOWN, Grand Cayman — With a reputation as a specialist exchange, the Cayman Islands Stock Exchange (CSX) has built on the popularity of the Cayman Islands as one of the world’s leading maritime centers by issuing listing rules specific to the shipping industry, making it possible to list shipping companies incorporated in any jurisdiction owning anything from a super yacht to a commercial fleet. The CSX provides a solid proposition to shipping companies looking to raise capital, attract new investors or simply to reinforce the security and sustainability of the investment of existing owners.
A listing on the CSX is a cost-effective alternative to listing on larger onshore exchanges and provides benefits to ship owners and managers, such as a listing being a pre-condition for some institutional investors and lenders, as well as the transparency and regulatory oversight that will provide security to private investors. The ability to sell and trade shares also provides a potential exit strategy and a means of syndicating or diluting ownership without complete divestment.
The CSX rules are based on IOSCO disclosure requirements, tailored to the requirements of the specialist market in which shipping companies operate. The core requirement is for a valuation of all material vessels to be carried out by a suitably qualified independent valuation expert (such as a member of the Institute of Chartered Shipbrokers) and for details of fleet operations, compliance with maritime codes and conventions, a summary of legal titles, and enhanced risk disclosure.
Valia Theodoraki, CEO commented on the new listing rules for shipping companies: “The Cayman Islands is among the world’s most recognised maritime and financial centers so it is fitting for the CSX to join the growing body of specialists in the jurisdiction. The service providers are already present in Cayman and many of our listing agents are law firms active in providing registry and financial advice to shipping companies. We feel that the ability to register, finance and list these companies as part of a seamless process should enhance the overall offering of our jurisdiction.”
The Cayman Islands is ranked in the top 13 jurisdictions in the world in the International Chamber of Shipping’s annual Flag State Performance Table. Over 1,900 vessels carry the Cayman Islands flag and 822 of those are superyachts. Ship owners are attracted to the Cayman Islands because of its stable business environment, the legal structure, which is based on English Common Law and a cadre of world-class maritime service providers in the jurisdiction providing support to ship owners and their managers. CEO of the Maritime Authority of the Cayman Islands, Mr. Joel Walton, also welcomed the CSX’s focus on shipping companies. “There is enormous opportunity for the development of the shipping industry in the Cayman Islands, and the inclusion of the Cayman Islands Stock Exchange in this mix uniquely positions Cayman as a jurisdiction that offers a range of sophisticated solutions such as being able to list on a credible exchange,” Mr. Walton added.
The CSX has a long history as a boutique exchange specialising in listing investment funds, debt issuances and insurance linked securities. In March 2013 the CSX launched on XETRA®, Deutsche Boerse’s international cash market platform for trading equities, bonds, warrants, exchange traded funds and other instruments. XETRA is used by 14 exchanges around the world from Frankfurt to Shanghai. The XETRA FIX (Financial Information eXchange protocol) Gateway offers simple and flexible access to all XETRA markets and the inclusion of the CSX means its market can be easily accessed through the ‘XCAY’ portal for trading any CSX-listed securities, with zero trading fees.
The Cayman Islands Stock Exchange (CSX) is a leading stock exchange for specialist companies and investors. The CSX is an affiliate member of IOCSCO and the World Federation of Exchanges and is accredited by HM Revenue and Customs as a recognised stock exchange. The CSX is the only offshore stock exchange to be a member of the Inter Market Surveillance Group. The CSX has a listed market value of over US$165 billion.
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