SGX assessing its market with CMCRC service
20 November 2014 Sydney
Image: Shutterstock
The Singapore Stock Exchange (SGX) has taken up the offer of the Australian Capital Markets Cooperative Research Centre’s (CMCRC’s) Market Quality Dashboard, to evaluate the quality of its capital market.
The dashboard has been billed as the world’s most comprehensive tool for reviewing the impact of market changes, with more than 50 metrics assessing fairness and efficiency within an unlimited number of world markets, and the ability to compare them.
SGX is the first exchange to use the dashboard. It will compile statistics for its six-monthly Securities Market Quality Indicators report, which provides information on trading, liquidity and volatility on its securities market. This will provide investors with a quantitative overview of the market dynamics, allowing them to make informed decisions based on market quality.
Jenny Chiam, head of securities at SGX, said: “We are pleased to have this opportunity to work closely with CMCRC. Leveraging on the Market Quality Dashboard, we will be able to assess the quality of our market more quickly and efficiently. This will in turn improve our proposition as a leading fund-raising venue and investment hub.”
Drawing on publically available and privately imported data, the dashboard is designed to help regulators meet universal mandates and to ensure that changes within the markets will pass tests of fairness and efficiency.
It can provide a history of more than 40 markets, while customisable metrics allow users to visualise and develop their own statistics.
Professor Michael Aitken, lead researcher and CEO of CMCRC, said: “The dashboard is a tool to help frame debate about market design changes (both before a change is made and after it has been implemented) with actual data rather than opinions and vested interests. Ultimately it seeks to validate that new market design changes lead to the outcomes that regulators intended, including outcomes in terms of fairness.”
The CMCRC accepts that the dashboard cannot act as a competent replacement for detailed academic study; instead it is a tool to provide quick results for relatively detailed information.
The dashboard was developed over five years, using Australian government funds. It is now continuing with development and working towards adding new metrics and market capabilities.
The dashboard has been billed as the world’s most comprehensive tool for reviewing the impact of market changes, with more than 50 metrics assessing fairness and efficiency within an unlimited number of world markets, and the ability to compare them.
SGX is the first exchange to use the dashboard. It will compile statistics for its six-monthly Securities Market Quality Indicators report, which provides information on trading, liquidity and volatility on its securities market. This will provide investors with a quantitative overview of the market dynamics, allowing them to make informed decisions based on market quality.
Jenny Chiam, head of securities at SGX, said: “We are pleased to have this opportunity to work closely with CMCRC. Leveraging on the Market Quality Dashboard, we will be able to assess the quality of our market more quickly and efficiently. This will in turn improve our proposition as a leading fund-raising venue and investment hub.”
Drawing on publically available and privately imported data, the dashboard is designed to help regulators meet universal mandates and to ensure that changes within the markets will pass tests of fairness and efficiency.
It can provide a history of more than 40 markets, while customisable metrics allow users to visualise and develop their own statistics.
Professor Michael Aitken, lead researcher and CEO of CMCRC, said: “The dashboard is a tool to help frame debate about market design changes (both before a change is made and after it has been implemented) with actual data rather than opinions and vested interests. Ultimately it seeks to validate that new market design changes lead to the outcomes that regulators intended, including outcomes in terms of fairness.”
The CMCRC accepts that the dashboard cannot act as a competent replacement for detailed academic study; instead it is a tool to provide quick results for relatively detailed information.
The dashboard was developed over five years, using Australian government funds. It is now continuing with development and working towards adding new metrics and market capabilities.
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