The Cayman Islands Stock Exchange (CSX) was founded in 1996 and is a leading, globally focused, specialist exchange for various sophisticated products. Our focus is on being an efficient gateway to global markets. As such, the CSX is known for the broad array of companies that access the Exchange, including leading global financial institutions, emerging technology and life sciences companies, as well as some of the world’s most successful hedge funds. The CSX currently has listed more than 4,000 securities and maintains a market capitalisation of more than US$190 billion.
The CSX is governed by a Non-Executive Board of Directors and overseen by a Chief Executive, accountable to the Board, who is responsible for strategic direction of the Exchange as well as its day-to-day operations. The Cayman Islands Stock Exchange is fully owned by the Cayman Islands Government (www.gov.ky) and is subject to supervision and regulation by the Stock Exchange Authority. The Stock Exchange Authority is an autonomous body established in 1996 under Cayman Islands Law as the dedicated regulator for the CSX.
The CSX was established under The Cayman Islands Stock Exchange Company Law, 1996 (the “Law”) as a private limited company. Under the Law, the CSX has the sole and exclusive right to operate one or more securities markets in the Cayman Islands.
The specific regulatory objectives of the CSX are to:
- protect investors and the public interest and prevent unfair discrimination between customers, issuers or broker members;
- ensure that broker members deal honestly and fairly with investors, and have sound finances and management;
- ensure that business is conducted in an orderly manner and so as to afford proper protection to investors;
- ensure the effective monitoring and enforcement of compliance of broker members with its rules; and
- promote and maintain high standards of integrity and fair dealing in the carrying out of business by broker members.
The Law confers self-regulatory powers on the CSX as an exchange, subject to supervision and regulation by the Stock Exchange Authority. The Stock Exchange Authority is an autonomous body established as the dedicated regulator for the CSX under the Law. The Authority has statutory responsibility for the policy, regulation and supervision of the Exchange.
The Authority appoints the members of the Exchange’s Council that is responsible for administering the business affairs and day-to-day operations of the Exchange.
The Council has delegated its powers and functions for listing matters to the Exchange’s listing committee and for trading and membership matters to the Exchange’s membership committee, subject to the appeals procedures set out in the rules. The committees are made up of members of the Council.
The admission of securities to listing on the CSX is governed by the CSX’s Listing Rules, which also provide detailed requirements for the continuing obligations of issuers, the enforcement of those obligations and the suspension and cancellation of listing.
The Model Code of Conduct imposes restrictions on dealing in the securities of an issuer of equity securities listed under Chapter 6 of the Listing Rules beyond those imposed by law. Its purpose is to ensure that persons discharging managerial responsibilities and employee insiders do not abuse, and do not place themselves under suspicion of abusing, inside information that they may be thought to have, especially in periods leading up to an announcement of the issuer’s results. It is the responsibility of the issuer and its directors and senior officers to ensure compliance with the Code. Failure to do so may lead to the Exchange taking disciplinary action.
The Cayman Islands Stock Exchange Code on Takeovers and Mergers (“the Code“) applies to all issuers other than open-ended investment funds and issuers of specialist securities and exists principally to ensure fair and equal treatment of all shareholders in relation to takeovers. The Code also provides an orderly framework within which takeovers are conducted. Those who do not conduct themselves in accordance with the provisions of the Code may be sanctioned and may find that the facilities of the CSX markets are withdrawn.
The admission and ongoing business activities of broker members of the CSX are governed by the CSX’s Membership Rules. The Membership Rules include comprehensive member conduct rules as well as market conduct rules. In order to qualify as a broker member of the Exchange, an applicant must satisfy the CSX that it meets the criteria set out in the Membership Rules.
Only CSX broker members may access the trading facilities of the CSX. A broker member admitted to trade in securities listed on the Exchange also must be licensed for trading in securities by the Cayman Islands Monetary Authority.
Trades can be placed through existing CSX broker members – details of which appear on the CSX website – or it is possible to use any of the existing network of approximately 400 banks, financial services institutions and financial enterprises worldwide who are currently connected to one or more of the other 14 XETRA markets.
Any security traded on XCAY can be supported by broker members who are also specialist market makers, playing an active support role to the trading in particular securities.
International participants on other XETRA markets can be passported through a simple process and at a minimal additional cost as CSX broker members and will be able to use their existing XETRA connection to trade on XCAY. This creates additional synergies as implementation costs are reduced.
Cayman Islands Stock Exchange
Cayman Islands Laws
- Monetary Authority Law (2013)
- Mutual Funds Law
- Companies Law
- Company Management Law
- Money Laundering Regulations
- Bank and Trust Companies Law
- Bank and Trust Companies Law (License Applications and Fees) Regulations
- Exempted Partnership Law
- Security Investments Business Law
- Tax Information Authority Law
- Local Companies (Control) Law
- Public Management and Finance (Amendment) Law
- Director Registration and Licensing Law
- Freedom of information law
As a public authority, the Cayman Islands Stock Exchange is subject to compliance with the Freedom of Information Law, 2007 (the FOI Law), which provides public access to certain CSX operational records. FOI access does not extend to commercially sensitive client information, the confidentiality of which is guaranteed under the FOI Law (s21).
FOI requests must be in writing and must include the applicant’s name and an address with as much detail as possible about the information sought.
The Exchange will respond to FOI requests within 30 calendar days,and reserves the right to charge a fee to cover its reasonable costs of processing the request. Requests should be emailed to email@example.com. For detailed advice on application and appeals procedures, please refer to the FOI Unit website.