The CSX is one of the leading offshore exchanges for the listing of structured debt offerings, located in one of the world’s largest financial service centers. It claims to be one of the leading offshore exchanges for the listing of structured debt offerings, which represent nearly one-quarter of its approximately 1,300 listings. These debt listings, often offered through special purpose vehicles, include asset-backed and credit-linked securities, CDOs, CLOs, Eurobonds and related programs.
The Cayman Islands Financial Services Association lists credibility, tax advantage, flexibility, efficiency and price leadership as reasons to list a structured debt offering on the CSX.
The CSX is a well-regulated exchange, evidenced by its status as an affiliate member of IOSCO and as the only offshore exchange that is an affiliate member of the Intermarket Surveillance Group, a surveillance focused group of over 30 exchanges from around the world, including all US equity and derivatives exchanges, CIFSA says. Listing on the CSX provides an unhindered opportunity to market an offering to institutional investors who may face legal or regulatory constraints on investing in unlisted securities.
The CSX is the only offshore exchange in a North American time zone that has UK Inland Revenue recognized status whereby UK investors can receive interest and dividend payments tax free, the CIFSA says.
CSX listing rules are easy to understand and commercially driven, CIFSA says. They are tailored to accommodate the latest structures and products, with the ability to waive the application of rules in appropriate circumstances, and to meet the needs of issuers who market their offerings to institutional and high net-worth investors, emphasizing the disclosure of all relevant information without imposing unnecessarily onerous conditions and restrictions.
CIFSA claims that the CSX staff fast track all listings applications and are committed to meet each issuer’s listing deadline. The listing application process is completely electronic, enabling staff to complete a listing within several days of receiving the initial draft listing document. There is no enhanced fee for speedy handling of new listings.