Canadian stock exchange group TMX Group has acquired a 16% minority stake in the Bermuda Stock Exchange (BSX).

BSX, established in 1971, is a fully electronic offshore securities market which specializes in listing and trading of capital market instruments such as equities, debt issues, funds, hedge funds, derivative warrants and insurance linked securities.

As part of the acquisition, TMX Group CEO Tom Kloet will be joining the BSX board of directors.

Kloet said that this investment represents TMX Group’s commitment to looking beyond Canada for opportunities.

BSX president and CEO Greg Wojciechowski said that Canada and Bermuda share a long history and important jurisdictional ties, this strategic investment can only strengthen this long standing relationship.

"We look forward to exploring new avenues of economic development and mutually beneficial cooperation in our domestic and international capital markets," added Wojciechowski.