The CSX is regarded as a well regulated, approachable and adaptable exchange.
To date, the CSX has admitted in excess of 4,000 securities to listing and trading on its market and this success has been attributed to a variety of benefits.
- Operates a dynamic framework whose flexibility, efficiency and competitive fee structure attracts international issuers.
- Recognised internationally as a listing centre for investment funds and debt securities, a reputation which has grown since the first issuer was listed in 1997.
- Recognised Stock Exchange for the UK Income Tax Act 2007. Quoted Eurobond Exemption’ for debt securities allows issuers to make interest payments without deduction of withholding taxes.
- Offers efficient service, competitive pricing and fast document turnaround time.
- Listing on the CSX provides a valuable marketing tool for promoters and arrangers.
- The disclosure and continuing obligations of the CSX are less onerous and easier to comply with than other stock exchanges, such as those subjected to the EU Directives.
The CSX is recognised as a well regulated stock exchange which continuously adapts to the ever-changing markets. The CSX has built a strong reputation as an approachable, responsive and adaptable exchange.
UK HMRC Recognition- The CSX is designated by the UK Inland Revenue as a recognised stock exchange under Section 1005 of the UK Income Tax Act 2007. This designation is significant because debt securities listed on the CSX are eligible for the ‘Quoted Eurobond Exemption’. This allows an issuer within the UK tax net to make payments of interest on the listed securities gross without deduction for tax. In addition, in the United Kingdom there are capital gains and inheritance tax benefits to investing in shares listed on a recognised stock exchange such as the CSX.
Among the categories of securities a personal pension scheme in the UK can hold are securities listed or dealt in on a 'recognised stock exchange'. Accordingly, CSX listed securities can now form part of the investments held by such personal pension schemes.
Similarly, securities listed on the CSX are now regarded as 'qualifying investments'. Most of the securities held directly in Personal Equity Plans (PEPs) and Individual Savings Accounts (ISAs) must be 'qualifying investments'.
International Organisation of Securities Commission- Another landmark for the CSX was its approval as an affiliate member of the International Organisation of Securities Commissions (‘IOSCO’) which further underlines the global reputation of the CSX.
World Federation of Exchanges- The CSX is also registered with the World Federation of Stock Exchanges as an affiliate member.
Fast and efficient listing services- The CSX’s team is an experienced and highly qualified team that understands the complexities of specialist vehicles and is dedicated to meeting the issuers’ deadlines. This is combined with an operating philosophy to ensure that the cost of listing is not an impediment to access our markets. The result is a high quality listing environment and a high level of service at reasonable cost.
Timely Response- The CSX is aware of the time pressures under which issuers and their advisers operate and will make every effort to accommodate an issuer’s timetable. The CSX will comment on the first draft of a listing document within five days of receipt and on further drafts within three days.
Competitive Listing Fees- CSX fees are kept under review and are competitive with other established exchanges.
The CSX’s listing rules reflect its core competencies as a specialist exchange. They are based on IOSCO disclosure standards, widely regarded as international best practice, adapted to the specialist environment in which the CSX operates and are easy to understand. This means we can accommodate the latest structures and products while meeting the needs of issuers who market their offerings to sophisticated, institutional and/or high net worth investors. Our rules emphasize disclosure of all relevant information without imposing unnecessarily onerous conditions.
Existing Documentation Can Support Listing- For example, prospectus, offering memorandum, scheme particulars, pricing supplements may be used, with the addition of a listing wrapper, to form the listing document.
No Minimum Size- The CSX does not impose any specific subscription size requirement.
EU Directives Do Not Apply- No EU directives apply to CSX listings, making the regulatory burden less onerous, allowing the CSX to be more flexible in its approach, which is often appropriate where dealing with a sophisticated investor base.
Transparency and third party oversight are one of the principal benefits of listing on the CSX. Specific measures to uphold these important globally recognised requirements for capital markets activities are embedded within the CSX’s listing rules and operating practices.
Continuing Obligations- On-going compliance requirements promote transparency. A listing on the CSX requires issuers to comply with certain continuing obligations requirements which should ensure dissemination of material information to the markets and investors on a timely basis.
NAV Publication- Every listed fund is required to provide its NAV per share to the CSX immediately upon calculation. Publication of the NAV on the CSX's website allows investors to mark their investment to market.
Trading Facilities- The CSX’s listed securities may be traded on the CSX’s internationally recognised XETRA-based trading platform.
Investors' regulatory requirements- A listing on the CSX facilitates the sale and distribution of securities to investors who are otherwise precluded from investing in unlisted securities, whether for regulatory or other reasons eg. institutional investors, pension funds.
Integrated with the Cayman’s Financial Services Sector- Located within Cayman Islands, one of the worlds’s leading specialist financial centers, the CSX has established relationships with the world-class professional community operating from the jurisdiction and serving global client base.
The Cayman Islands occupy leadership positions in banking, insurance, funds, company services, trusts and other sectors and has maintained a stable economic and political climate throughout its history, which is reinforced by a legal and regulatory framework rooted in English Common Law with local statutes.
In addition to its tax neutral status, the Cayman Islands government and the jurisdiction’s private sector have maintained a partnership that has created a business environment that is responsive to local and international market needs and provides flexibility while maintaining a high degree of integrity.
- Enhanced marketability through increased visibility and public profile.
- One-Stop-Shop - The vast majority of Cayman service providers act as listing agents for the CSX, which means that clients will have a ‘one-stop-shop’ for incorporating and listing in Cayman Islands.
- Enables investors to monitor investments by using mark-to-market valuations; and
- Better access to capital.