Welcome to the CSX - Autumn 2007 newsletter.

Content:	Cayman Islands Stock Exchange Celebrates 10 Years
	CSX is CUSIP/ISIN Numbering Agent for Cayman Islands and British Virgin Islands
	Introduction of New Trading Platform
	Listings Update
	CAIA Presentation
	New Participants
	Staff News

CSX Directors, Staff and Chairman of the Stock Exchange Authority

With numerous recognitions and accomplishments to its credit, the Cayman Islands Stock Exchange (CSX) in June 2007 celebrated its tenth anniversary and its role as an important part of the Cayman Islands financial services industry.

CSX leadership and staff were joined by the Leader of Government Business, the Hon. Kurt Tibbetts, the Chief Secretary, the Hon. George McCarthy, Financial Secretary the Hon . Kenneth Jefferson and other senior officials from the Cayman Islands Government and members of the business community at a special ten-year tribute, which looked back at the Exchange’s many milestones and looked forward to a bright future.

"It's gratifying to see that the partnership between Government and the private sector has provided a foundation for the success of the Stock Exchange," said Financial Secretary the Hon. Kenneth Jefferson. "From Government's perspective, we welcome and look forward to many more of these public-private initiatives that continue to drive excellence within the Cayman Islands financial services industry."

"The rise of the CSX in the past 10 years is a significant accomplishment and one that demonstrates the Cayman Islands continuing role as a successful international financial services centre," said Mr Anthony Travers, Chairman of the CSX and an architect of its development. "The CSX exemplifies Cayman’s key attributes of high quality service, specialist knowledge, public-private partnership and an effective yet proportionate regulatory regime."

As part of the evening’s celebrations, Mr Travers also made a special announcement regarding the formation of a CI$20,000 CSX scholarship to be awarded to a Caymanian student enrolled in the four-year Bachelor of Science programme at the University College of the Cayman Islands.

The CSX was originally set up to provide a listing facility for the specialist products of the Cayman Islands - mutual funds and specialist debt securities. The CSX’s capabilities now extend to include the listing of many forms of sophisticated financial securities including derivative warrants, depositary receipts, Eurobonds, preferred shares and international equity. The CSX currently has more than 1,600 listings and a market capitalisation of more than $150 billion.

CSX Chief Executive Mrs. Valia Theodoraki described how the Exchange has been able to make a major impact on the offshore marketplace in a relatively short time. "This is a testament to the excellent leadership provided by our Board, the hard work of our high quality staff, as well as the support of the Cayman Islands Government and private sector in our first phase of development," she said. "Looking back on the past 10 years, it has truly been a collaborative effort."

Some of the milestones and recognitions that the CSX has achieved in its first 10 years include:

• In 2006, surpassing 1,000 listings before the 10-year mark, posting on average, double-digit listings growth each year since its inception
• In 2005, reaching profitability two years before budget allowing the CSX to become a positive contributor to Government’s finances
• In 2004, being granted ‘recognised stock exchange’ status by the UK Inland Revenue, greatly enhancing the CSX’s commercial appeal to UK investors
• In 2003, being admitted as an affiliate member of the International Organisation of Securities Commissions
• In 2001, being the first (and still only) offshore exchange to become a member of the Intermarket Surveillance Group, a self governing association of exchanges and exchange regulators from around the world committed to information-sharing and the enhancement of market surveillance procedures
• In 1999, becoming the first offshore stock exchange to be registered with the London Stock Exchange

The Cayman Islands Stock Exchange is CUSIP/ISIN numbering agent for the issuance of CUSIP/ISIN numbers for securities of issuers incorporated or formed either in the Cayman Islands or in the British Virgin Islands (“BVI”). The CSX has been the exclusive CUSIP numbering agent for the issuance of CUSIP/ISIN numbers for securities of issuers incorporated or formed in the Cayman Islands for a number of years and recently added BVI issuers.

The CUSIP/ISIN numbers provide unique identifiers for securities under a standard protocol. A CUSIP number consists of 9 characters and is normally issued to securities traded within North America. The CINS or ISIN (International Securities Identification Number) consists of 9 characters and was created for securities traded on an international basis that are either underwritten (debt issues) or domiciled (equities) outside the United States and Canada.

All CUSIP/ISIN numbers for securities registered in the Cayman Islands are characterized by the prefix “KYG” followed by 9 characters e.g. KYG123S12345. All CUSIP/ISIN numbers for securities registered in the British Virgin Islands are characterized by the prefix “VGG” followed by 9 characters e.g. VGG123S12345.

For further information on obtaining a Cayman Islands or BVI CUSIP/ISIN number, please visit our website or contact Ms. Marlice Watler, our CUSIP/ISIN Administrator, at cusip@csx.com.ky or phone 1(345) 914-1891.

In November 2006, the CSX introduced a new trading platform that is user-friendly and provides an increased level of transparency to trading conducted in Exchange-listed securities. The trading system also facilitates for trading members of the Exchange the clearing and settlement of trades in accordance with the Exchange’s clearing and settlement rules. The Exchange anticipates that the new trading platform will assist it to attract additional equity listings over the next several years and to increase the volume of trading in these listed securities.

Year over year growth in total listings for the past year was approximately 44%, with the listings of hedge funds/mutual funds increasing by approximately 6% and the listings of debt instruments increasing by approximately 110%. In the past 2 years, total listings have increased by approximately 70%, with hedge funds/mutual funds listings increasing by approximately 90% and debt instrument listings by approximately 400%. Listings overall now stand at well over 1600.

Growth has been strongest for specialist debt listings, which have quadrupled in number over the past two years to over 500 listings. These debt listings, whether asset-backed or credit-linked, are often offered through special purpose vehicles (SPVs) and may include sukuks, CDOs, CLOs and related programs. The increased listings are at least in part due to the efforts the CSX has made to tailor its listing rules to accommodate the latest structures and products and its commitment to meet each issuer’s listing deadline.

A noticeable trend has begun to develop with the listing of a significant number of eurobonds as well as catastrophe bonds. They have chosen to list on the CSX due to its speedy turnaround times among other reasons. The provisions of EU Directives, including the EU Prospectus Directive, do not apply to CSX listings and the CSX’s listing rules are designed specifically to meet the needs of issuers who market their offerings to institutional and high net worth investors, by providing for the disclosure of all relevant information without imposing unnecessarily onerous conditions and restrictions.

The Exchange historically has sourced its listings primarily from North America and Europe. Specialist debt listings originating in the United States continue to increase with the number of European based products showing significant growth. A recent trend over the past several years has been the listing of funds based in South East Asia. The Exchange is actively marketing itself in Asia as well as in the Middle East and anticipates obtaining more listing activity in the future from these regions.

Dr. Nelson Lacey of the Chartered Alternative Investment Analyst Association (CAIA) gave a presentation in George Town to over 30 alternative investment industry professionals about the CAIA program. The presentation was sponsored by the Cayman Islands chapter of AIMA and took place in conjunction with the GAIM Cayman fund conference and the STEP conference held the same week in Grand Cayman.

CAIA’s goal is to become the internationally recognized standard for alternative investment professionals in the same way that the CFA has become the standard for finance industry professionals generally. The CAIA designation can be achieved by successfully completing a two-level examination program that covers hedge funds, managed futures, private equity, commodities and real estate. The program combines a fundamental understanding of each of these core areas within alternatives with a strong ethical component emphasizing best practices within the industry.

New Listing Agent

Turner & Roulstone, Attorneys-At-Law, became the Exchange's newest listing agent in May 2007.

New Crossing Market Participant

CIBC Bank & Trust (Cayman) Ltd. became a participant in the CSX's crossing market in October 2006.

Head of Business Development

The CSX is pleased to welcome Gerry Halischuk as its new Head of Business Development. He replaced Monique Melis after Monique returned to the UK following 6 successful years with the Exchange.

Gerry joins the Exchange from Market Regulation Services Inc. ("RS"), Canada’s equity markets regulator, where he was Vice President, Western Region and managed its Vancouver office in charge of regulating trading on the TSX Venture Exchange. Previously he held a number of senior positions at the British Columbia Securities Commission including Director, Capital Markets Regulation Division, Director, Compliance Division, and Manager of Investigations in the Enforcement Division. Mr. Halischuk is a securities lawyer and joined the Commission from the former Vancouver law firm of Freeman & Company. He received his law degree from Osgoode Hall Law School in Toronto, also obtained an MBA from York University in Toronto, and has been admitted to the Bars of Ontario, British Columbia and Saskatchewan.