| 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% |
|
| 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
|
| Independence and 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
|
Direct Custodian Bank of the Year (Country Award)
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
| Dimension |
Criteria |
| Financial Performance |
- Total value of securities under custody
- Growth in value of securities under custody during 2014
- Securities in custody as a multiple of total assets & total equity
- Credit rating by international rating agencies
- # of mandates acquired during 2014
|
| Asset Servicing & Safekeeping |
- 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 |
- Offers clients risk management solutions
- Presence of online information delivery & custody reporting upgrades
- Offers performance evaluation services
- Incorporates competitive pricing
|
| Global Custodian |
- Level of engagement and strategic partnership with global custodians
|
| Technology |
- Capacity and capabilities of investment technology platform
- Use of advance record-keeping systems
|
| Risk Management |
- 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
|
Best Derivatives Provider
We believe that a well-run derivatives provider has an established track record of delivering sustainable financial performance while registering strong growth in its derivatives business. The derivative provider further offers client-focused hedging solutions strengthened by robust risk management practices, technology driven customer services, which is reflected in its stellar volume growth.
| Dimension |
Criteria |
| Financial Performance |
- Operating Income in FY 2014
- Net profit margin in FY 2014
- % revenue growth in 2014
- % contribution of derivatives segment to group business
- Credit rating by international rating agencies
|
| Customer Service |
- # of derivative products
- Type of structured products
- Quality and complexity of risk management solutions offered
- Investor training & education
- # of new derivative products launched
|
| Volume Growth |
- Total trading volume in FY 2014
- % YoY growth in trading volume
|
| Technology |
- Capacity and capabilities of investment technology platform
|
| Risk Management |
- Continuous review of enterprise risk exposure and mitigation policies
- Capacity and capabilities to manage system failures
- Capital Adequacy Ratio
- 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
|
