The Cayman Islands is the world leader in the offshore mutual funds industry. The CSX’s clear, concise listing rules and fast efficient service have underpinned its success as a listing venue for offshore mutual funds.

Schroders, Bank of Butterfield, CIBC and Scotiabank are just a few of the world’s leading asset managers attracted to a listing on the CSX. Several of the largest hedge funds in the world have also taken advantage of our facilities.

A listing on the CSX brings multiple benefits to a mutual fund. Because certain types of investor may only invest in listed, rather than unlisted securities, a listing enhances the marketability of a mutual fund and gives it access to a wider investor base. For closed–ended funds, where there is no facility to redeem, a listing on the CSX can provide a secondary market with a trading platform for both buyers and sellers.

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The CSX specialist debt listing facility has attracted the attention of the major institutional arrangers for these types of issues. Merrill Lynch, Deutsche Bank, Chase Manhattan, Salomon Smith Barney, UBS and Lehman Brothers have all used the CSX for listing issues of asset-backed securities, credit-linked notes and collateralized debt offerings.

The CSX’s understanding of this highly specialized market has enabled it to develop sophisticated listing rules. These have been specifically tailored to meet the needs of debt issuers and to accommodate the latest sophisticated structures and products.

The listing rules also reflect that such securities are usually purchased and traded by a limited number of institutional investors who are particularly knowledgeable in investment matters. Accordingly, the rules focus upon the disclosure of all relevant information without imposing unnecessarily onerous conditions upon the issuer

Unlike other stock exchanges, there is no requirement in the CSX’s listing rules for a local listing agent to be appointed in connection with an application to list specialist debt securities. The lead manager or the issuer’s legal advisors may deal directly with the CSX’s listing department. This helps to reduce costs and improve time efficiencies.

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Listing rules which specifically facilitate the listing of derivative warrants were introduced in March 1999, and were met immediately with great ineterest from major international financial institutions. The CSX listing requirements, with their emphasis on disclosure of relevant information, are appropriate for the sophisticated investors who purchase and trade in these specialist products.

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The CSX has developed rules for Depositary receipts.The listing requirements for depositary receipts are less demanding than those for shares because the market is dominated by sophisticated investors, primarily financial institutions, who are particularly knowledgeable in investment matters.

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The latest addition to the listing rules of the CSX is the facility to list Eurobonds.
The eurobond rules cover ‘plain vanilla’ eurobonds, convertible debt securities, securities issued by supranational bodies and securities guaranteed by a company or a government. Issues of such products may have to be listed to meet the investment requirements of institutional investors.

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