As Environmental, Social, and Corporate Governance (ESG) issues become more prevalent in the capital markets, investors, stakeholders, and regulators are using new data—and greater insight—to drive their decisions. Some stock exchanges play a double role in this trend, simultaneously pushing better ESG practices into their markets and protecting them from immaterial or burdensome regulation. Can an exchange support listed companies and sustainability reporting channels?
The Abu Dhabi Securities Exchange was established in November 2000 for the trading of securities including shares issues by joint stock companies., bonds, sukuks issued by governments and corporations, as well as ETFs and other financial instruments approved by UAE SCA. Its market capitalisation as at 31 December 2013 was AED 402.2 billion/USD 110.2 billion (an increase of 57% over 2012) and its total turnover was almost AED 85 billion/USD 23.29 billion.
Within a short period of time, Dubai Financial Market (DFM) has fast developed into the leading financial market across the region. Its ongoing efforts and strategic initiatives have further reinforced Dubai’s position as a dynamic capital markets hub. DFM has always played a pivotal role in developing the financial markets sector in the region through enormous innovations and electronic services utilizing the most advanced technology.
The global competition for capital is fierce and intensifying. Yet the information platform on which so much capital market activity is based has not been updated for over a generation. It is time for corporate reporting to step up to the plate, and become a partner, alongside businesses, stock exchanges and providers of financial capital, to help foster the conditions for investment, trade and job creation.
The WFE market segmentation survey has been conducted yearly since 2007. The 2012 study is available on the Federation’s website (http://world-exchanges.org/reports/studies-and-surveys). For each market segment (large-cap, mid-cap, small-cap and micro-cap), WFE members were asked to provide, the number of listed companies, the number of trades, the market capitalization and the value of Electronic Order Book share trading.
There is a broad literature on micro aspects of equity ownership, focusing especially on features such as the distribution of direct and indirect ownership of equities by household population quintiles or broken down according to socio-demographic characteristics of the population. This line of research is based on survey data produced by pollsters or official offices of statistics.
In the US, Swap Execution Facilities (SEFs) or SEFs are registering with authorities at a rapid clip. SEFs appear shiny and new and market commentators and the press report each new SEF registration with great fanfare. However, I believe SEFs are not really that new.
Moreover, for observers in the exchange space, SEFs may seem to be organized and operate similarly to exchanges. In fact, some SEFs also have licenses which allow them to operate essentially as exchanges. In some cases, they have even been referred to as exchanges. However, all SEFs cannot be called exchanges and some will operate very differently than exchanges going forward.
This month Kazakhstan Stock Exchange (KASE) is celebrating its 20th anniversary. Throughout 20-years of its history KASE evolved into the only licensed and regulated stock exchange in Kazakhstan with the following markets: foreign currency market, government securities market, market of shares and corporate bonds, bills and derivatives market.
The exchange opened for trading in May 1997, therefore we’re still a fairly young exchange. We are a fully electronic exchange, with a state of the art trading system (UTP) and a fully integrated central shareholders register. A significant part of the trading nowadays is conducted on-line. There are 42 companies listed, with a joint market capitalization of around $ 137 billion. Turnover in 2013 averaged at around $ 80 million a day.
HOSE is the leading stock market in Vietnam, currently accounting for 85% of total market capitalization. HOSE has attracted the most large-scale companies that represent the national economy. The products traded on HOSE include stocks, municipal bonds, corporate bonds and fund certificates. As of September 2013, there were 301 companies listed on HOSE, with a total market capitalization of almost USD 40 billion, an increase of 480% compared to year 2000. Besides, there were also 3 types of fund certificates and 39 bonds listed on HOSE. The respectively listed volumes were 26.4 billion shares, 126 million fund certificates and 72 million bonds. The average trading volume per day during quarter III/2013 was 49 million shares, equivalent to 45 million USD per day. The average turnover ratio was 42.05% during the first half of year 2013.