Cayman Islands: CSX - Guide To Listing Funds

Last Updated: 2 June 2016
Article by Walkers Global


Over the last 40 years the Cayman Islands has matured into one of the world's largest international financial centers, providing institutionally-focused, specialized services to a global client base. The Cayman Islands' competitive strength in global financial services lies in its ability to provide an effective and cost-efficient tax neutral platform for international capital flows in an environment of economic and political stability. The Cayman Islands is one of the world's leading offshore jurisdictions for the establishment of investment funds.

For an investment funds incorporated in Cayman Islands who seek a listing, the Cayman Islands Stock Exchange (the "CSX" or "Exchange") should be the natural listing venue. By domiciling and listing in the same jurisdiction, a fund will eliminate the need for duplicate service providers in another jurisdiction. A 'one stop shop' results in cost and time efficiencies.

Since 1997, the CSX has provided a specialized listing and trading facility for the specialist products of the Cayman Islands financial industry, in particular investment funds, specialist debt securities and Eurobonds. The CSX also provides a secondary listing facility and an offshore trading venue for securities listed and traded on another recognized exchange and offers domestic companies the ability to list and trade locally.

In April 2013 the CSX published new listing rules to facilitate listings by start-ups, mineral companies and specialist companies for sophisticated investors.

By acquiring XETRA technology and launching rules targeting equity listings the CSX offers an alternative international venue for listing and trading the shares of growth and specialist companies.

It is recognised that this guide will not completely answer detailed questions which clients and their advisers may have. It is intended to provide a sketch of the subject matter covered. This guide is therefore designed as a starting point for a more detailed and comprehensive discussion of the issues. Particular circumstances or transactions should be the subject of specific legal advice given on the relevant facts at the relevant time.

Information of the CSX

The CSX commenced its operations on 2 January 1997 with the aim of providing facilities for the listing and trading of equity and debt securities. While complying with international standards for recognised stock exchanges, the CSX adopts a flexible and pragmatic approach to regulation. Consequently, the CSX provides issuers of securities with fast, efficient and cost effective listing facility. In terms of listing requirements and procedures, the CSX offers a more flexible less onerous alternative to the other exchanges.

Why use the CSX:

  1. Fast and efficient listing services from an experienced and highly qualified team that understands the complexities of the specialist products listed on the CSX and is committed to meeting each issuer's listing deadline.
  2. Competitive pricing (discounts are available for umbrella funds and fund families).
  3. Listing Committee convene as often as necessary to approve listings.
  4. International standards of issuer regulation.
  5. Sophisticated listing rules that are easy to understand and commercially driven.
  6. Unlike other offshore jurisdictions, there are no exchange controls in Cayman.
  7. No minimum subscription level for Cayman-domiciled funds (on other stock exchanges the market value of the securities for which application is made must be at least £500,000 (or foreign currency equivalent)).
  8. No restrictions on investment policy and principal investment objectives. Investment policies can be changed provided that the mechanism is disclosed in the listing document (other stock exchanges insist that a fund can not materially change its principal objectives and policies as set out in its Listing Document for a minimum period of three years from the date of its listing other than with the consent of a majority of holders).
  9. The CSX does not insist on any prescribed degree of investment diversification (eg can list currency or commodity fund).
  10. There is no requirement for majority board independence.
  11. Corporate directors are allowed.
  12. The CSX does not insist on the adoption of International Accounting Standards/International Financial Reporting Standards, provided that an appropriate accounting standard is used. For funds which have been is existence for less than twelve months, the CSX requires an audited statement of the net asset value of the fund and its portfolio of investments. Newly incorporated funds are not required to produce financial statements.
  13. As the CSX operates outside EU, and no EU directives apply, the regulatory burden is less than onerous than listing on other major stock exchanges.
  14. CSX is not bound by US SEC regulations.
  15. Synergies from listing on an exchange in the leading domicile in the world for investment funds and structured debt products, providing access to the full range and top calibre of service providers in a jurisdiction that has fashioned its legislative, regulatory and administrative approach to enable the utmost efficiency in specialist product operations.

Deutsche Börse XETRA® trading platform

  1. On 25 March the CSX started using the Deutsche Börse XETRA® trading platform.
  2. The Xetra Trading Platform (the "Xetra") is one of the flagship technologies offered by the Deutsche Börse. Xetra can be operated either fully electronically for continuous trading, or through a specialist for the continuous auction trading model.
  3. The CSX offers companies that wish to list access to a network of approximately 400 global participants who are currently authorised to trade on one or more Xetra markets. International Xetra participants can be passported through a simple process as CSX broker members and are able to reuse their existing Xetra connection to enter trades into the CSX Xetra platform.

The New Market - 'XCAY'

The CSX will be accessible through the FIX Gateway under the Market Identification Code 'XCAY'. Those wishing to trade on XCAY will be able to do so through existing CSX broker members or can access a network of approximately 400 banks and brokers worldwide who are currently authorised to trade on one or more XETRA markets. International XETRA participants can be passported through a simple process as CSX broker members. Trading on XCAY is Monday to Friday continuous with main trading between 12:00pm to 5:30pm (GMT), pre- and post-trading and opening and closing auctions.

Visibility and Trading System Facility

The CSX operates an electronic trading system for equity and debt securities (unlike the CISX where Issuers cannot trade debt). All CSX listings and trading information can be accessed from the CSX's pages on the Bloomberg Triach screen-based trading platform (access via CSX < GO > on the Bloomberg system) and on its website

An online link to the CSX's reporting system enables every listed fund easily to meet its NAV reporting obligations by electronically self-reporting updates of the fund's net asset values when calculated, whether on a daily, weekly, monthly or quarterly basis, as well as any change in the number of shares outstanding. The updated information is immediately and automatically published on the CSX's website, which also includes all previously published updates, to provide an easily accessible, publicly available historical record of the fund's performance. The CSX's website also includes all news releases issued by the fund as well as background information about the fund such as its major service providers. To permit a broader distribution of the data, the CSX has agreements in place with Bloomberg and with Telekurs to publish some or all of this data through their facilities. From 25 March 2013 all fund listing on the CSX have the availability for their shares to be traded on the CSX's Deutsche Börse XETRA® trading platform. The Xetra Trading Platform (the "Xetra") is one of the flagship technologies offered by the Deutsche Börse. Xetra can be operated either fully electronically for continuous trading, or through a specialist for the continuous auction trading model.


Trading in the shares listed on the CSX may be settled via Euroclear, Clearstream and DTC.

International Recognition

The CSX has attracted the following international recognition:

  1. The CSX is regulated by Cayman Islands Stock Exchange Authority.
  2. On 12 July 1999, the CSX became the first offshore stock exchange to be granted approved organization status by the London Stock Exchange (the "LSE"). As a result, securities listed on the CSX are eligible for trading in the LSE's international equity market and for quotation on the SEAQ (Stock Exchange Automatic Quotation) international trading system.
  3. In June 2001, the CSX became the first offshore exchange to join the Inter market Surveillance Group (a group of 23 North American, European, Asian and Australian stock exchanges committed to the co-ordination of regulatory efforts across the markets represented).
  4. On 4 March 2004, the UK Inland Revenue (now "HM Revenue & Customs") designated the CSX as a Recognised Stock Exchange under Section 841 of the Income and Corporation Taxes Act, 1988 (ICTA). Consequently, qualifying debt securities listed on the CSX are now eligible for the Quoted Eurobond Exemption. This allows an issuer liable to pay UK tax to make payments of interest on the listed securities gross without deduction for tax. In the UK, there are also capital gains and inheritance tax benefits to investing in shares listed on a recognised stock exchange such as the CSX. In designating the CSX as a recognised stock exchange under section 841 of ICTA it was necessary for the UK Inland Revenue to determine that:

    1. the CSX is a stock exchange undertaking the normal business of a stock exchange regulated as an investment exchange in a major economy or in a significant financial centre; and
    2. the Cayman Islands have proper and effective arrangements for financial regulation which meet internationally accepted modern standards in this area.
  5. The CSX is also an affiliate member of IOSCO and a full member of AIMA, WFE, ISG, ESF.

Appointment of Listing Agent

All applicants seeking a primary listing on the CSX must appoint a listing agent to assist in the listing process.  The listing agent will be responsible for all communications and dealings with the CSX. This will include seeking approval of the CSX for the Listing Document (and any derogations from disclosure requirements) and for the preparation and filing with the CSX of the listing application and other supporting documentation.

Walkers is able to act as a listing agent and we are experienced in the provision of high quality and cost effective professional services in relation to the listing.

The CSX Approach to Listing

In accordance with its pragmatic, business oriented approach to regulation, the CSX is flexible as concerns the disclosure required in respect of a fund issuer and its securities in a Listing Document. The CSX listing rules are intended to provide investors with enough information to enable them to make an informed assessment as to whether or not to invest in the listed securities but without imposing unnecessarily onerous demands on an issuer.

To continue reading this article, please click here

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.