Equities Research

The program's association with the Australian Stock Exchange (ASX) and its automated access to equities and market data, is the basis of wide-ranging and in-depth research into the performance of equities markets. The research has initiated structural reform of the market that is the basis of on-going work with the ASX and other equities markets in the region.

Search Database Equities Research

Research Program

• Objectives
• Current & Future Research Programmes
• Impact on Industry
• Partnerships

Objectives

The objectives of the program are to improve the efficiency and performance of equities markets via the examination of five market elements:

1. Technology
2. Regulation Information
3. Protocols
4. Participants
5. Instruments

This together with enhancing the quality of research data are the main objectives of the program.

Current & Future Research Programmes

• The impact of recent changes in stamp duty, particularly the effects of recent changes affecting stocks emanating from New Zealand and Papua New Guinea
• The likely impact of abandoning all stamp duty on security transactions
• The inter-relationship between batch and continuous trading, especially in the context of new ASX rules setting up after market calls
• The impact of off-market trading on price efficiency/discovery
• The impact of index inclusion/exclusion on corporate performance
• The optimal amount of transparency in an order driven market. Specific projects include the impact of increasing the size of orders that can hide volume and the impact of eliminating broker identifiers on orders
• The impact of new issues on the national economy
• The appropriateness of current information mechanisms for small investors
• The factors leading to the attractiveness of warrant over options trading

Impact on Industry

• Technology - The impact of the introduction of the Stock Exchange Automated Trading System (SEATS) on the ASX
• Regulation - Evidence was presented that halving the stamp duty tax rate on ASX stock exchange transactions, would have a beneficial impact even after taking account revenue losses to Australian tax authorities. The net social welfare gains (benefits) after taking account of these losses would be of the order of $4 billion on a present-value basis for the Australian community. The ASX consequently implemented this recommendation.
• Information - Information Leakage Before Takeover Announcements: Insider Trading or Market Anticipation
• Protocols - The impact of Block Trading on the Australian Stock Exchange - Further Time Analysis
• Participants - How Brokers Facilitate Trade for Long-Term Clients in Competitive Securities Markets
• Instruments - The Effect of Option Listing on the Underlying Australian Security Market

Partnerships

The Equities Research program has established a strong and mutually beneficial partnership with the ASX resulting in extensive research into the operation and performance of automated equity markets.