The Channel Islands Stock Exchange (CISX) could be used for the listing of UK REITS when they are introduced next year.
The CISX has experienced significant interest from tax advisers and fund management companies, a fact highlighted by Chief Executive Tammy Menteshvili during a presentation to finance professionals at an event organised in association with Jersey Finance.
The presentation was arranged to update members of Jersey Finance about the growth and development of the CISX since its inception in 1998 and how it had contributed to the success of the finance industries in the Channel Islands.
The CISX already lists more than 40 offshore property funds on the Exchange and, with the requirement for REITs to be listed on an authorised Exchange, Menteshvili believes that the CISX would be ideally placed.
'We are being inundated with enquiries from tax advisers and fund management groups,' she says. 'And initial interest indicates that we are favoured over some other Exchanges.'
During the presentation, Menteshvili also outlined a number of other developments including the CISX's intention to create an index of CISX listed securities by sector, which would allow tracker funds to track securities on the Exchange. She is also negotiating to provide CREST settlement for Open Ended Investment Companies (OEICs) traded on the CISX, an enhancement to the facility introduced last year, which permitted trading in OEICs for the first time.
Menteshvili believes that the Channel Islands Stock Exchange offers a number of advantages over other exchanges.
'The CISX combines flexibility with responsibility,' she says. 'It has received international recognition from the SEC in the United States and the UK Inland Revenue and FSA. The Market Authority retains discretionary powers to assess applications and this gives the CISX added flexibility. We are located outside of the European Union, which offers huge advantages for issuers in certain circumstances. These factors, together with our emphasis on personal service and a willingness to respond quickly, are a powerful formula for success.
'We bring an additional business dimension to the finance industries in the Channel Islands. For example, we have attracted international issuers that have no previous business connections with the Islands and we have been attracting listings from other centres such as Dublin and Cayman and most recently from the Isle of Man. There are over 150 international issuers utilising the facilities of the Exchange and we have attracted some of the most prestigious international names including four major US investment banks that list their structured funds with us.'
The CISX is now firmly integrated within the Channel Islands and has achieved many of its initial objectives.
'There was considerable interest from the Members of Jersey Finance in the developments at The Channel Islands Stock Exchange and an excellent turnout at the Presentation,' says Beverley Le Cuirot, Director of Marketing & Communications, Jersey Finance Limited. 'The Exchange is an important feature of Jersey's Finance Industry and its success in attracting listings from domiciles around the world is clearly bringing additional business to the Island.'