Guernsey exchange listings shrink in 2015

The number of securities listed on the Channel Islands Securities Exchange (CISE) fell for the third year in a row in 2015, despite the exchange seeing an overall increase in market capitalisation.

At the end of 2015, there were 2,173 securities listed on the CISE, compared with 2,274 at the end of 2014. Market cap, however, increased by 21%, to hit £357 bn, data from the exchange released on Tuesday revealed.

There was also a dramatic fall in trading volume for the second year in a row. In 2015, 22.77m trades were made, down from 50.41 million in 2014, and less than a third of the 2013 figure of 76.66.

The figure was also just a little more than a tenth of the all-time peak of 199.65 million trades in 2008, when the exchange was known as the Channel Islands Stock Exchange and under different ownership.

However, the trades made last year, though fewer in number than in 2014, involved more money. Overall turnover in 2015 increased by around £10m on the previous year, hitting £39.9m.

Meanwhile, despite a net decrease in listed securities, CISE saw 423 new listings over the year, including investment funds, real estate investment trusts (REITs), and convertible bonds. Given that the number of listings decreased by 101, that puts the number of de-listings at 524.

Despite the net reduction in listings, there were more new additions and fewer departures in 2015 than there were in 2014. CISE chief executive Fiona Le Poidevin said this rise in new business was “really pleasing”.

“Two thousand and fifteen was extremely busy, not just with new listings but also other developments,” Le Poedevin said in a statement accompanying the year-end data.

“At the start of last year we opened our office in Jersey, and our Guernsey office moved premises during the summer. We also updated our systems, rebranded, made changes to our rules for listing debt, started a review of our rules for listing investment vehicles and introduced new rules for Special Purpose Acquisition Companies (SPACs).”

When asked about the fall in the number of listings, Le Poidevin said: “The overall number of listings has fallen in recent years as a number of funds and other vehicles established prior to the 2008 financial crisis are now coming to their natural maturity. They are not being replaced at the same rate by new listings but it is positive to see that the rate of decrease in overall listings has fallen this year as new business picks up.”

Regarding the fall in trading volume, she told International Investment: “Unlike many other exchanges, trading is not currently a major component of the CISE where the significant proportion of our business is investment vehicles and debt securities. The number of equity listings on the Exchange has fallen in recent years but we are now seeing renewed interest in trading companies listing on the CISE and expect to see this trend continue.”

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