The Evaluation Criteria

The Asian Banker Financial Markets Award programme recognises the competition amongst various financial market infrastructure participants operating in the dynamic pre and post trading landscape.

The programme is designed to be a repository of evolving best practices from which players operating in the financial market ecosystem can benchmark their own products and processes over the long term. It is based on a set of transparent indicators upon which scorecards are developed. Organizations under consideration must broadly demonstrate a clear track-record of excellence and commitment in the following domains:

1. Financial performance
2. Business continuity and sustainability
3. New product innovation and listing
4. Efficiency and capacity
5. Risk management
6. Process and technology
7. Major achievements and contribution to the industry
8. Investor protection and education
9. Transparency and quality of disclosure
10. Client references and customer service levels

This programme has been administered by The Asian Banker since 2001 and we have refined our evaluation process to reflect the rapid development of Asian financial markets. Winners are determined following an exhaustive evaluation of submissions along with on-site research and interviews conducted by our research team. The Asian Banker is dedicated to transparency and fairness that is evidenced through the various scorecards that we publish for all awards categories. The scorecard is available on our website by clicking on the following link:http://www.asianbankerawards.com/financialmarkets/scorecard.php

We encourage you to address all criteria relevant to the project in the submission as the evaluation of the submission will reflect the degree to which this is judged to have been done.

The research team evaluates the submissions and conducts independent verifications in order to be able to complete the scoring for each element of the scorecard. This may include requests for additional information or interviews with key institution executives.

Stock Exchange of the Year
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
  • Net profit margin
  • % revenue growth
Capital Raising 20%
  • Change in IPO listings
  • IPO listings (investment flows)
  • % Change in capital raised by shares issued
  • Capital raised by shares issued (US$ m)
  • % Change in capital raised by bond issues
  • Capital raised by bond issues (US$ m)
Product Development 10%
  • ETF Growth
  • # of ETFs listed
  • # of bonds listed
  • % Change in # of bonds listed
  • # of securitised derivatives
  • % Change in # of securitised derivatives
Liquidity, Efficiency, Capacity 10%
  • Growth in total contracts traded
  • Ave. trade/ contract size (US$ m)
  • Open interest
  • Change in total equity trade value
  • Equity trade value (US$ m)
  • Bid-ask spread
  • # messages per second
  • Execution speed
Corporate Governance  5%
  • Management accountability
  • Board of Directors
  • Minority Shareholders protection
  • Controlling Shareholders & Meetings Procedures
  • Financial Statement and Disclosure
Strategy & Delivery 5%
  • Strategies/policies planned for 2020
  • Strategies/policies delivered in 2020
Risk Management 15%
  • 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 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
  • Digital onboarding
Financial Derivative Exchange of the Year
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
  • Net profit margin
  • % revenue growth
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
  • Single-stock futures contracts traded
  • Stock index options contracts traded
  • Stock index futures contracts traded
  • Bond futures contracts traded
  • 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
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 20%
  • Trading system/platform type and functionality
  • # 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
  • Digital onboarding
Commodities Exchange of the Year
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 15%
  • Operating Income
  • Net profit margin
  • % revenue growth
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
  • Commodity options contracts traded
  • Forex futures contracts traded
  • Forex options contracts traded
  • Ave. trade/ contract size (US$m)
  • Open interest
Efficiency, Capacity & Delivery 10%
  • # messages per second
  • Execution speed
New Product Offering 10%
  • Change in new contracts launched
  • New contracts launched
Risk Management 10%
  • Use of price band limits/circuit breakers/trading pause
  • Continuous review of enterprise risk exposure and mitigation policies
  • Capacity and capabilities to manage system failures
  • Disaster recovery and business continuity planning
Market Access, Connectivity & Technology 20%
  • Trading system/platform type and functionality
  • # of additional listing services
  • Operation of sell-side and buy-side connectivity networks
  • Type, range and scope of technology systems in place
  • Results of new technology initiatives
  • Streamlined trading architecture
  • Digital onboarding
Trading Platform of the Year
We believe that a high-functioning trading platform facilitates efficient processing of investor transactions. The system is operationally stable and clients are offered a diverse set of asset class with enhanced geographic coverage. The platform adopts international best practices for trading efficiency resulting in low cost and high liquidity. Market access and connectivity is enabled through use of streamlined trading functionality, advance technology and robust risk management processes.
Dimension Weight Criteria
Sustainable Business Performance 15%
  • Customer Account growth
  • Trading flow (US$ m)
  • Change in trading flow
  • # 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
  • Asset classes offered
Technological Innovation 20%
  • 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 15%
  • Quality of trading tools
  • Quality of trading support
  • System flexibility
  • Quality of risk controls
  • Quality of clearing & settlement process
  • EMS-OMS functionality
Risk Management 20%
  • Continuous review of enterprise risk exposure and mitigation policies
  • Capacity and capabilities to manage system failures
  • Disaster recovery and business continuity planning
Alternative Trading System of the Year
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 35%
  • Operating Income
  • Net profit margin
  • % revenue growth
  • # of ATS participants/members
Liqudity 30%
  • Ave. daily volume traded
  • Change in ave. daily volume traded
  • Ave. daily value executed (US$ m)
  • Change in ave. daily value executed
  • Crossing rates (fill rates)
  • % executed at mid
Risk Management and Mitigation 35%
  • 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
Trading & Reference Data Provider of the Year
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 25%
  • Operating Income
  • Net profit margin
  • % revenue growth
Data Delivery 20%
  • Latency
  • Throughput
  • Data freshness
  • # awards won or finalist position (finance-related)
  • # data centers based in Asia
  • # tie-ups with local data firms
System Characteristics 25%
  • 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 25%
  • Continuous review of enterprise risk exposure and mitigation policies
  • Capacity and capabilities to manage system failures
  • Disaster recovery and business continuity planning
Financial Markets Regulator of the Year
We believe that a well functioning financial markets regulator builds trust and confidence among market participants while encouraging a culture of strong ethics. The regulator has effective plans to mitigate market failures and minimize the risks of unintended consequences of legislation provide requisite advice on market surveillance. They are also cognizant of the commercial impact that regulations have on market participants. They are also engaged in constant communication with key stakeholders to gather key insights to formulate regulatory frameworks. In the period assessed, the regulator has also introduced a compliance regime that can adapt to technological innovation.
Dimension Weight Criteria
Market Intervention Capability 25%
  • Clarity in the agency's mandates, objectives, rules, responsibilities and intervention procedures
  • Effectiveness of market stability measures taken (regulatory famework, guidance, consultation)
  • Track record in resolution of issues
  • Ease in collection of market activity data
Independenceand Governance Structure 20%
  • Transparency and consistency in conduct
  • Appointment procedures of senior staff of the agency
  • Quality and strength of accountability mechanisms
  • Coordination with other agencies (central bank, government etc.)
  • Presence of an ombudsman in the system
  • Conflict of interest vs. closeness to the industry
Right to Punitive Enforceable Action 15%
  • Exists
  • Does Not exists
  • Exercised in the year under review?
Degree of International Co-ordination 5%
  • Senior representation in international forums such as the G20 and IOSCO.
Perception of Regulated Market Participants and Entities 15%
  • "They may not like you, but do they trust and respect you?"
Quality and Consistency of Reports 20%
  • No. of different types of reports
  • Frequency of each report
  • Comprehensiveness in topics covered
  • Availability and ease of use online
  • Annual report- level of comprehensiveness (policies explained, boxed case studies etc.)
  • Usability of data
Financial Markets Technology Implementation of the Year
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 35%
  • Project went live during the year
  • Project was completed on time as agreed between institution and solutions provider
  • Costs of the project were within budget
  • Alternative approaches considered
Quantitative Outcome 40%
  • 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 25%
  • 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

Given the differences in the nature and type of technology projects that may be implemented in the financial markets space, we have introduced sub-categories to better classify them. This will bring the Financial Markets Technology Implementation awards in line with the Bank Technology Innovation and Risk Management Technology Implementation programmes which have sub-categories to differentiate the types of project and will allow for more like-for-like comparison and evaluation. The sub-categories currently comprise the following:
  • Best Integrated Treasury and Capital Markets Platform Implementation
  • Best Custodian System Implementation
  • Best Clearing and Risk Management System Implementation
  • Best Securities Trading System Implementation
  • Others
Clearing House of the Year
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 20%
  • Operating Income
  • Clearing fee and growth (by segment if possible/applicable)
  • % revenue growth
  • Average cash and collateral under management
Clearing Capabilities 35%
  • # of eligible securities handled
    Notional outstanding of interest rate swaps
    Clearing value of foreign exchange
    Gross notional credit default swaps cleared
    Nominal value of fixed income products cleared
  • Cash value of equity trades cleared
  • Growth of derivative volumes cleared (Options & Futures Only)
    Demonstrates increased efficiency and transparency in clearing process
Customer Service 15%
  • Offers extended settlement services of securities
  • # of new industry initiatives undertaken
  • Established plans to expand clearing of OTC and exchange traded clearing in domestic market
Collateral Management 15%
  • Efforts and mechanisms in place for margin monitoring in the domestic market space
  • Range of acceptable collateral that constitute high calibre assets
  • Automated solutions for calling and management of non-cash collateral
Risk Management 15%
  • ERM framework consistent with industry standards
  • Level of concentration risk
  • Prudent utilization of default funds and strategic plans for business continuity
  • Compliance with applicable local regulations and international best practices
Central Securities Depository of the Year
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
Custodian Bank of the Year
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 operates across multiple jurisdictions in the region and has well-developed partnerships with respective local custodians. 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
  • Securities in custody as a multiple of total assets & total equity
  • Credit rating by international rating agencies
  • # of mandates acquired
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
International Presence 10%
  • # of jurisdictions served
  • # of sub-custodian partnerships
  • Relationship with sub-custodians and agent banks
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 5%
  • Availability of asset transfer systems
Technology 20%
  • 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
Sub-Custodian Bank of the Year (Country Award)
We believe that a well-run sub-custodian bank ensures appropriate safeguarding of securities under its purview. The institution has an established track record of delivering sustainable financial performance while acquiring new mandates on a consistent basis predicated on a strong relationship with global custodians. 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
  • Securities in custody as a multiple of total assets & total equity
  • Credit rating by international rating agencies
  • # of mandates acquired
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
International Presence 10%
  • # of jurisdictions served
  • # of sub-custodian partnerships
  • Relationship with sub-custodians and agent banks
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 5%
  • Availability of asset transfer systems
Technology 20%
  • 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
Leadership in Financial Markets of the Year
The winner of the exchange of the year award, categories 1-3, will automatically be considered for the ultimate Leadership in Financial Markets of the Year prize hence no separate submission is required.

You are invited to make a submission for an award in one or more of these categories. Please note that not all awards are made every year for the categories that exist. Our choice of awards to be made in any one year depend on the quality of submissions received and benchmarks set by the submissions for the rest of the industry in that year. We do modify the awards over time to recognize the evolution of financial markets structures along with the introduction of new trading platforms and adoption of innovative technological systems and processes

Related Events
   

Thursday, 08 October 2020


Important Links
Winners List 2019
   
   


 
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