Last year was one of remarkable growth for the Channel Islands Stock Exchange (CISX), and 2005 looks as though it will maintain that momentum.
In the first half of this year, the exchange listed some 220 new securities, and the introduction last year of
Today the exchange lists a wide range of hedge funds and funds of hedge funds from leading managers including Man Investments, Thames River Capital, GLG Partners, Collins Stewart, HSBC, Close, Jupiter and Morley. Hedge funds are continuing to drive growth in fund listings, alongside other alternative classes such as property and structured products.
In May, for example, the CISX listed no fewer than 17 new open-ended funds. In the past, we’ve mostly seen hedge funds structured as closed-ended products, but the trend toward open-ended funds reflects increased interest in funds of hedge funds. There are definite signs that the funds business has been stimulated by the launch of the Expert Funds Guide. While not every new fund that is established is applying to us for listing, there is an evident link between new launches and new listings, and a clear correlation between the introduction of the regime and more hedge fund business coming to us.
An important factor in the growth of this business is the recognition by the authorities in
The presence of the exchange adds to the benefits for a hedge fund being established in
From the regulatory point of view,
The CISX listing rules favour a disclosure regime rather than featuring long lists of prohibitions, although obviously products have to comply with the spirit of our rules. But there are no overt restrictions on investment parameters, accounting standards and so forth. Flexibility is what product designers are looking for, and that’s what we offer.
Nevertheless, the listing rules and the exchange’s operations have won recognition from regulators in countries such as the
By Tamara Menteshvili
Tamara Menteshvili, Chief
Executive,
Stock Exchange