The Current State of Asia-Pacific Stock Exchanges: A Critical Review of Market Design

Posted: 20 May 2005

See all articles by Carole Comerton-Forde

Carole Comerton-Forde

UNSW Business School; Financial Research Network (FIRN)

James Rydge

Grantham Research Institute on Climate Change and the Environment

Abstract

This paper provides a review of the market microstructure of ten Asia-Pacific stock exchanges. Asia-Pacific exchanges face significant challenges in an increasingly global and competitive world equity market. These exchanges need to provide an efficient, fair and competitive trading environment if they are to attract new listings and attract investors. This paper documents significant differences in market design across Asia-Pacific exchanges and many of these features are at odds with the existing microstructure research. Achieving competitive markets may involve a review of market design and regional consolidation. Failure to increase attractiveness may result in Asia-Pacific exchanges losing market share in the global equity market. A review of current best practice in a number of critical microstructure areas is useful for market organizers to assist in policy development, is helpful for academics wishing to undertake empirical research in these markets and is a source for future research ideas.

Keywords: Asia-Pacific exchanges, market microstructure, market design

JEL Classification: G14

Suggested Citation

Comerton-Forde, Carole and Rydge, James, The Current State of Asia-Pacific Stock Exchanges: A Critical Review of Market Design. Pacific-Basin Finance Journal, Vol. 14, pp. 1-32, 2006, Available at SSRN: https://ssrn.com/abstract=721343

Carole Comerton-Forde (Contact Author)

UNSW Business School ( email )

UNSW Business School
High St
Sydney, NSW 2052
Australia

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

HOME PAGE: http://www.firn.org.au

James Rydge

Grantham Research Institute on Climate Change and the Environment ( email )

Houghton Street
London, WC2A 2AE
Great Britain

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