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Scorecard

We believe that a well managed stock exchange facilitates efficient raising of capital and enables price determination for participants. The institution has an established track record of delivering strong financial performance, healthy liquidity and depth. The exchange adopts international best practices for corporate governance and employs business strategies that foster product development & growth. Market access and connectivity is enabled through use of streamlined trading architecture, superior technology and robust risk management processes.

Dimension Weight Criteria
Financial Performance 15%
  • Operating Income in FY 2013
  • Net profit margin in FY 2013
  • % revenue growth in 2013
Capital Raising 10%
  • Change in IPO listings
  • IPO listings in 2013 (investment flows)
  • Change in capital raised by shares issued
  • Capital raised by shares issued in 2013 (US$ m)
  • Change in capital raised by bond issues
  • Capital raised by bond issues in 2013 (US$ m)
Product Development 10%
  • ETF Growth
  • # of ETFs listed in 2013
  • # of bonds listed in 2013
  • Change in # of bonds listed
  • # of securitised derivatives (2013)
  • Change in # of securitised derivatives
Liquidity, Efficiency, Capacity 15%
  • Growth in total contracts traded
  • Ave. trade/ contract size (US$ m)
  • Open interest
  • Change in total equity trade value
  • Equity trade value in 2013 (US$ m)
  • Bid-ask spread
  • # messages per second
  • Execution speed
Corporate Governance  10%
  • Management accountability Board of Directors
  • Minority Shareholders protection
  • Controlling Shareholders & Meetings Procedures
  • Financial Statement and Disclosure
Strategy & Delivery 10%
  • Strategies/policies planned for 2013
  • Strategies/policies delivered in 2013
Risk Management 10%
  • Use of circuit breakers/price band limits/trading pause
  • Continuous review of enterprise risk exposure and mitigation policies
  • Capacity and capabilities to manage system failures
  • Disaster recovery and business continuity planning
Market Access, Connectivity & Technology 20%
  • Trading system/platform type and functionality
  • # of cross-trading tie-ups in 2013
  • # of additional listing services
  • Operation of sell-side and buy-side connectivity networks
  • Type, range and scope of technology systems in place
  • Results of new technology initiatives
  • Streamlined trading architecture

We believe that a well managed financial derivative exchange facilitates efficient transfer of risk and enables price determination for participants. The institution has an established track record of delivering strong financial performance, healthy liquidity and market depth. The exchange adopts international best practices for trading efficiency and employs business strategies that foster product development & growth. Market access and connectivity is enabled through use of streamlined trading architecture, superior technology and robust risk management processes.

Dimension Weight Criteria
Financial Performance 15%
  • Operating Income in FY 2013
  • Net profit margin in FY 2013
  • % revenue growth in 2013
Volume Growth 15%
  • Change in stock options contracts traded
  • Change in single stock futures contracts traded
  • Change in stock index options contracts traded
  • Change in futures index options contracts traded
  • Change in bond futures contracts traded
Liqudity 15%
  • Stock option contracts traded in 2013
  • Single-stock futures contracts traded in 2013
  • Stock index options contracts traded in 2013
  • Stock index futures contracts traded in 2013
  • Bond futures contracts traded in 2013
  • Ave. trade/ contract size (US$ m)
  • Open interest
Efficiency, Capacity & Delivery 15%
  • # messages per second
  • Execution speed
New Product Offering 10%
  • Change in new contracts launched
  • New contracts launched in 2013
Risk Management 10%
  • Use of price band limits/circuit breakers/trading pause
  • Continuous review of enterprise risk exposure and mitigation policies
  • Capacity and capabilities to manage system failures
  • Disaster recovery and business continuity planning
Market Access, Connectivity & Technology 20%
  • Trading system/platform type and functionality
  • # of cross-trading tie-ups in 2013
  • # of additional listing services
  • Operation of sell-side and buy-side connectivity networks
  • Type, range and scope of technology systems in place
  • Results of new technology initiatives
  • Streamlined trading architecture

We believe that a well managed commodities exchange facilitates efficient transfer of risk and enables price determination for participants. The institution has an established track record of delivering strong financial performance, healthy liquidity and market depth. The exchange adopts international best practices for trading efficiency and employs business strategies that foster product development & growth. Market access and connectivity is enabled through use of streamlined trading architecture, superior technology and robust risk management processes.

Dimension Weight Criteria
Financial Performance 20%
  • Operating Income in FY 2013
  • Net profit margin in FY 2013
  • % revenue growth in 2013
Volume Growth 15%
  • Change in commodity futures contracts traded
  • Change in commodity options contracts traded
  • Change in forex futures contracts traded
  • Change in forex options contracts traded
Liqudity 15%
  • Commodity futures contracts traded in 2013
  • Commodity options contracts traded in 2013
  • Forex futures contracts traded in 2013
  • Forex options contracts traded in 2013
  • Ave. trade/ contract size (US$m)
  • Open interest
Efficiency, Capacity & Delivery 10%
  • # messages per second
  • Execution speed
New Product Offering 10%
  • Change in new contracts launched
  • New contracts launched in 2013
Risk Management 15%
  • Use of price band limits/circuit breakers/trading pause
  • Continuous review of enterprise risk exposure and mitigation policies
  • Capacity and capabilities to manage system failures
  • Disaster recovery and business continuity planning
Market Access, Connectivity & Technology 15%
  • Trading system/platform type and functionality
  • # of cross-trading tie-ups in 2013
  • # of additional listing services
  • Operation of sell-side and buy-side connectivity networks
  • Type, range and scope of technology systems in place
  • Results of new technology initiatives
  • Streamlined trading architecture

We believe that a high-functioning trading platform facilitates efficient processing of investor transactions. The system is operationally stable and clients are offered a diverse set of asset class with enhanced geographic coverage. The platform adopts international best practices for trading efficiency resulting in low cost and high liquidity. Market access and connectivity is enabled through use of streamlined trading functionality, advance technology and robust risk management processes.

Dimension Weight Criteria
Sustainable Business Performance 20%
  • Customer Account growth
  • Trading flow in 2013 (US$ m)
  • Change in trading flow during 2013
  • # of liquidity connections
  • Share of business from top 5% of liquidity connections
Geographic & Asset Class Coverage 15%
  • # of Asia Pacific markets covered
  • Change from total no. of products available in 2013
  • Asset classes offered
Technological Innovation 15%
  • Latency (microseconds)
  • Orders per second
  • Quotes per second
  • Data freshness
Liquidity 10%
  • Ave. time required to fill trades
  • Bid-ask spread
Cost 5%
  • Commissions
Trading Functionality 20%
  • Quality of trading tools
  • Quality of trading support
  • System flexibility
  • Quality of risk controls
  • Quality of clearing & settlement process
  • EMS-OMS functionality
Risk Management 15%
  • Continuous review of enterprise risk exposure and mitigation policies
  • Capacity and capabilities to manage system failures
  • Disaster recovery and business continuity planning

We believe that a high-performing alternative trading system facilitates efficient big ticket trading transactions without impacting transaction price. The system is operationally stable delivering equally strong financial performance. The platform adopts international best practices for trading efficiency resulting in high liquidity and volume to match block trades. Participants of the ATS are protected from the ill-effects of adverse selection through implementation of superior risk mitigation policies.

Dimension Weight Criteria
Financial Performance 20%
  • Operating Income in FY 2013
  • Net profit margin in FY 2013
  • % revenue growth in 2013
  • # of ATS participants/members
Liqudity 40%
  • Ave. daily volume traded 2013
  • Change in ave. daily volume traded during 2013
  • Ave. daily value executed 2013 (US$ m)
  • Change in ave. daily value executed during 2013
  • Crossing rates (fill rates)
  • % executed at mid
Risk Management and Mitigation 40%
  • Ave. execution size
  • Pricing structure (commission rates, US cents)
  • Price improvement margin (bps)
  • Volume imbalance and trade intensity (VPIN) metric
  • Probability liquidity providers are being adversely selected on ATS
  • ATS Structure
  • Continuous review of enterprise risk exposure and mitigation policies
  • Capacity and capabilities to manage system failures
  • Disaster recovery and business continuity planning
  • Transparency
  • Internal policing guidelines

We believe that a high-performing trading & reference data provider has a track record of delivering strong financial performance. Data delivery processes and systems match the needs and requirements of financial markets participants. System charateristics offer high functionality and information quality to users on a sustained basis. Data protection is enabled through use of robust risk management processes.

Dimension Weight Criteria
Financial Performance 20%
  • Operating Income in FY 2013
  • Net profit margin in FY 2013
  • % revenue growth in 2013
Data Delivery 25%
  • Latency
  • Throughput
  • Data freshness
  • # awards won or finalist position (finance-related)
  • # data centers based in Asia
  • # tie-ups with local data firms
System Characteristics 40%
  • Range of asset classes supported
  • Quality of trading support tools
  • Level of integration for 3P applications
  • Quality of reporting tools
  • Quality of analytical tools
  • Infrastructure set-up costs
  • Quality of customer support
Risk Management 15%
  • Continuous review of enterprise risk exposure and mitigation policies
  • Capacity and capabilities to manage system failures
  • Disaster recovery and business continuity planning

We believe that a well-established broker facilitates efficient and timely processing of investor transactions. The organization is consistently delivering strong financial performance supported by state of the art trading technology and product offerings. The broker adopts international best practices for trading efficiency resulting in low cost and best execution for its clients. Staff possess the requisite experience in managing customer needs in addition to generating high quality research in selecting investment opportunities.

Dimension Weight Criteria
Financial Performance 15%
  • Operating Income in FY 2013
  • Net profit margin in FY 2013
  • % revenue growth in 2013
Trade Experience 5%
  • Ave. years of experience per broker
Trade Technology 20%
  • # of specialised tools / services
  • Ave. time to process trade
  • Latency (microseconds)
  • Security
Product Offerings 10%
  • # of asset classes
  • Connectivity and Linkages
  • Geographic coverage
  • # of liquidity connections
Research Quality 10%
  • Circulation of independent analyst reports
  • Circulation of brokerage reports
  • Accuracy (# of technical awards won in past 3 years)
Cost 15%
  • Account fees
  • Commissions
Customer Service & Access 15%
  • Broker-customer ratio
  • Account growth per customer
  • % customers with growing accounts
  • Frequency & quality of broker-customer interaction
  • Ease of navigation & flexibility to customise
  • % remote channel users
  • Quality of remote trading tools
Risk Management 10%
  • Continuous review of enterprise risk exposure and mitigation policies
  • Capacity and capabilities to manage system failures
  • Disaster recovery and business continuity planning

We believe that a well established clearing house facilitates efficient clearing of securities for market participants. The institution has an established track record of delivering strong financial performance. The house adopts benchmark clearing capabilities enhanced with a customer-centric focus that provides superior collateral and incorporates robust risk management practices.

Dimension Weight Criteria
Financial Performance 25%
  • Operating Income in FY 2013
  • Net fee and commssion income in FY 2013
  • % revenue growth in 2013
  • Total value of securities under custody
  • # of netted transactions during FY 2013
Core Issuer Solutions 35%
  • Facilitates appropriate access of capital to issuers
    Demonstrates increased efficiency and transparency in settlement process through risk mitigation
    Delivers notary, settlement and safekeeping services for all eligible securities
    # of eligible securities handled
    Proportion of dematerialised securities, book-entry form & physical form securities
  • Corporate actions, proxy services and income collections & principal provisions
  • Technology incorporated maintains regulatory and ISO compliance
Customer Service 15%
  • Extended settlement and/or flexible settlement cycle
  • Offers trade settlement of international securities
  • # of new industry initiatives undertaken during 2013
  • Supports deposit and withdrawal functions
Collateral Management 10%
  • Efforts and mechanisms in place to source and mobilise collateral in the domestic market space
  • Securities lending & borrowing, matching and repo settlement
Risk Management 15%
  • Continuous review of enterprise risk exposure and mitigation policies
  • ERM framework consistent with industry standards
  • Capacity and capabilities to manage system failures
  • Disaster recovery and business continuity planning

We believe that a well run custodian bank ensures appropriate safeguarding of securities under its purview. The institution has an established track record of delivering strong financial performance while acquiring new mandates on a consistent basis. The custodian bank further offers client-focused asset-servicing solutions strengthened by robust risk management practices, technology driven customer services and post-settlement facilities.

Dimension Weight Criteria
Financial Performance 25%
  • Total value of securities under custody
  • Growth in value of securities under custody during 2013
  • Securities in custody as a multiple of total assets & total equity
  • Credit rating by international rating agencies
  • # of mandates acquired during 2013
Asset Servicing & Safekeeping 25%
  • Quality of core custody, unitholder recordkeeping & accounting services
  • Fund administration, pension and securities lending opportunities
  • Corporate actions, proxy services and income collections provisions
  • Knowledge and compliance with local regulations
  • Prudent handling of exception items
Customer Service 15%
  • Offers clients risk management solutions
  • Presence of online information delivery & custody reporting upgrades
  • Offers performance evaluation services
  • Incorporates competitive pricing
Post-Settlement Facilities 10%
  • Availability of asset transfer systems
Technology 10%
  • Capacity and capabilities of investment technology platform
  • Use of advance record-keeping systems
Risk Management 15%
  • Continuous review of enterprise risk exposure and mitigation policies
  • ERM framework consistent with industry standards
  • Capacity and capabilities to manage system failures
  • Disaster recovery and business continuity planning

We believe that a well run central securities depository ensures appropriate safekeeping of securities for market participants. The institution has an established track record of delivering strong financial & operational performance. The depository adopts an issuer-centric solutions focus, which is further enhanced through superior collateral management, robust risk management practices and extended customer support.

Dimension Weight Criteria
Financial Performance 20%
  • Operating Income
  • Net fee and commssion income
  • % revenue growth
  • Total value of securities under custody
  • # of netted transactions
Core Issuer Solutions 35%
  • Facilitates appropriate access of capital to issuers
    Demonstrates increased efficiency and transparency in settlement process through risk mitigation
    Delivers notary, settlement and safekeeping services for all eligible securities
    # of eligible securities handled
    Proportion of dematerialised securities, book-entry form & physical form securities
  • Corporate actions, proxy services and income collections & principal provisions
  • Technology incorporated maintains regulatory and ISO compliance
Customer Service 15%
  • Extended settlement and/or flexible settlement cycle
  • Offers trade settlement of international securities
  • # of new industry initiatives undertaken during 2014
  • Supports deposit and withdrawal functions
Collateral Management 15%
  • Efforts and mechanisms in place to source and mobilise collateral in the domestic market space
  • Securities lending & borrowing, matching and repo settlement
Risk Management 15%
  • Continuous review of enterprise risk exposure and mitigation policies
  • ERM framework consistent with industry standards
  • Capacity and capabilities to manage system failures
  • Disaster recovery and business continuity planning

We believe that a successful technology implementation project establishes an architecture that will support the financial institution's growth and provides the organization with requisite operational gains. The implementation process starts with a clear business case, delivers the project as planned and results in measurable qualitative and quantitative efficiencies for the organization on a sustained basis.

Dimension Weight Criteria
Implementation Process 30%
  • Project went live during 2013
  • Project was completed on time as agreed between institution and solutions provider
  • Costs of the project were within budget
  • Alternative approaches considered
Quantitative Outcome 35%
  • Cost savings realized or expected due to introduction of new technology
  • Execution efficiencies realized or expected for institution
  • Impact on turnover and market share
  • Ratio of deal size to asset size
Qualitative Outcome 35%
  • Impact on institution's operational performance and service delivery
  • Service improvement realized or expected for institution's clients
  • Enhancement of risk management processes & systems
  • Benchmarked transaction capability of chosen solution
  • Enables institution to quickly adapt to regulatory & information security needs

Contact information

For more information on our awards programme, please visit our website: https://www.asianbankerawards.com/financialmarkets/ or contact Mr Clement Hu at +65 6236-6502 or via E-Mail: chu@theasianbanker.com