Views of exchange are right on the money

THE Channel Islands Stock Exchange has been praised for its quality of service and willingness to respond to members' needs. Since Cenkos CI became the first local financial services company to list on the CISX, commendation has been voiced for the St Peter Port screen-based trading and listing facility.

Ozannes partner and OSL director Advocate David Moore, who acted as legal adviser for the Cenkos CI flotation, paid tribute to the organisation for its progress and credibility.

'It also reflects credit not only on the CISX staff but on those persons in government and the finance industry locally who had the vision to establish the CISX as a new enterprise and business centre for the islands almost 10 years ago,' he said.

'It serves as an example of the type of vision, progress and development the islands can demonstrate to foster growth and which Guernsey will need to continue to make to meet the many challenges with which the island will be faced with the new zero-10 tax regime.'

Since its inception in October 1998, the CISX has grown to comprise more than 2,000 securities approved by the market authority and a total capitalisation of US$17bn.

Chief executive Tamara Menteshvili said there were advantages to listing on the CISX rather than another market.

'The CISX is more cost-effective than any other stock exchange in our time zone and provides the equivalent in terms of visibility, liquidity and standard of regulation that a mainland European exchange could provide,' she said.

International recognition for the CISX has grown dramatically during recent years.

In July 2000, it was officially recognised by the Australian Stock Exchange and in September 2002 the US Securities and Exchange Commission designated it an offshore securities market.

It became an affiliate member of the International Organisation of Securities Commissions in October 2003 and in August 2005 became an associate member of the International Capital Market Services Association.

Investec Administration Services managing director Bob Banfield said the international status of the CISX made Guernsey and Jersey more attractive as jurisdictions of choice for fund managers and helped maintain the islands' position on the world stage.

'We work to tight deadlines and need to deal with the changes that are sometimes needed and the CISX is responsive and understanding of the demands being placed on us by our clients,' he said.

'The training sessions being delivered by the CISX are very practical and helpful in increasing the technical understanding of our staff.'

London-based Winterflood Securities managing director Julian Palfreyman was similarly impressed.

'Although we are not represented in the Channel Islands, as a firm we trade with brokers based there quite often and were invited to participate in the CISX,' he said.

'We never realised at the time that it would grow into what has become an invaluable tool for us.

'What I like about it is the willingness of the CISX and its approach to working with members - it's much nicer when people in that position listen to those who are using the market.

'They are always happy to listen to our opinions about trading mechanisms and how that could be done better. It's always been the case that the CISX management have been approachable and sympathetic to members' needs.'