Press releases 2007
13 June 2007
London Stock Exchange and Bahrain Stock Exchange sign co-operation agreement
The London Stock Exchange and the Bahrain Stock Exchange (BSE) today signed a long term co-operation agreement to formalize their existing strong ties.
The agreement will provide a mechanism of long term co-operation and foster the development of channels of communication and a continuing relationship between the London Stock Exchange and the Bahrain Stock Exchange for the respective benefit of the financial services industry in the United Kingdom and the Kingdom of Bahrain and will assist in the maintenance of orderly markets in securities on the markets operated by each party.
Commenting on the agreement, Martin Graham, Director of Markets at the London Stock Exchange, said: “We are very pleased to be able to announce this co-operation agreement with the Bahrain Stock Exchange. As the world’s leading international equity market we value our ties with other exchanges very highly. We look forward to developing our relationship with the Bahrain Stock Exchange. Working together we can build upon our existing strong links for the mutual benefit of our companies and our markets.”
"We are proud to sign this co-operation agreement with London Stock Exchange which will give us the opportunity to further strengthen the relations between the exchanges and explore areas of common interest," Mr. Fouad Rashid, Director of the Exchange commented. "This agreement will pave the way for more constructive and fruitful relations between the two markets, especially with the accumulative experience that London Stock Exchange has. The increasingly complex operations of stock markets worldwide are necessitating enhanced cooperation between bourses, both at the bilateral and multilateral levels", he added.
The BSE officially commenced operations in 1989, providing the country with its first organized stock exchange, and remains committed to becoming an advanced, innovative and competitive international capital market.
There are currently two companies from Bahrain listed on the London Stock Exchange's Main Market. For further information, please contact: London Stock Exchange
Alastair Fairbrother Press Office +44 (0)20 7797 1222 firstname.lastname@example.org Bahrain Stock Exchange
Ali Al Mansoor Press Office +973 17 265115 email@example.com Notes to editors:
• About the London Stock Exchange:
The London Stock Exchange is the world’s premier international equity exchange and a leading provider of services that facilitate the raising of capital and the trading of shares.
The London Stock Exchange is the most international equities exchange in the world and Europe's largest pool of liquidity. By the end of 2006, the market capitalisation of UK and international companies on the London Stock Exchange’s markets amounted to £4.4 trillion, with £6.7 trillion of equity business transacted over the year.
The London Stock Exchange is a Recognised Investment Exchange (RIE) under the Financial Services and Markets Act 2000 and is supervised by the Financial Services Authority. • About the Bahrain Stock Exchange:
The Bahrain Stock Exchange (BSE) was established by Amiri Decree No. 4 in 1987 and officially commenced operations two years later in June 1989. The BSE has grown to become one of the leading emerging stock markets in the region. The number of listed companies grew from 29 in 1989 to 50 in 2006. The number of bonds and Islamic Sukuks has increased from 1 in 1994 to 19 in 2006, and mutual funds from 1 in 1995 to 35 in 2006. Market capitalization has risen from BHD1.04bn (USD2.7bn) in 1989 to BHD7.96bn (USD21.1bn) by the end of 2006. To encourage long-term development of the region's capital markets, the BSE has signed several cross-listing agreements and memoranda of understanding with other Exchanges in the region. The BSE is a member of the Union of Arab Stock Exchanges and the Federation of Euro-Asian Stock Exchanges (FEAS) as well as a correspondent member of the World Federation of Exchanges.
In 1999 following an Amiri decree, the market was opened up to foreign investors, with Gulf Cooperation Council (GCC) investors being allowed to own up to 100% of a Bahraini company and non-GCC investors up to 49%. Additionally there are companies which allow 100% foreign ownership.
In addition, foreign brokerage firms were allowed to operate independently in Bahrain for the first time in 2003. In July 2004, Bahrain Stock Exchange (BSE) officially launched two new indices – the Bahrain All Share Index and Esterad Index. In July 2005, BSE officially launched the Dow Jones Bahrain Index.