S&P Indices and ASX Impact of Alternative Trading Venues on the Calculation of S&P/ASX Indices
S&P Indices, the index provider of the S&P/ASX index series in Australia, and the Australian Securities Exchange (ASX), issued a statement September 20 in response to recent queries directed to S&P Indices and ASX regarding the impact of alternate trading venues on the calculation of S&P/ASX indices.
Index methodology and calculations for S&P/ASX Index Series remain unchanged. The position of the index committee is that the index methodology and calculations for the index suite will remain unchanged post the introduction of alternate trading venues to the Australian market. The index committee will monitor trading activity from alternate trading venues. Should the trading activity on one or more alternate trading venues develop such that the index would benefit from the inclusion of this data, then the index methodology will be reviewed accordingly.
Until that point is reached, the S&P/ASX index values will continue to be calculated based on activity on ASX TradeMatch, the primary order book within the ASX Trade execution platform.
S&P/ASX Index series is closely monitored by the Index Committee. The S&P/ASX Index Committee comprises five members representing both S&P Indices and ASX. Decisions made by the Index Committee include all matters relating to index construction and maintenance. The Index Committee meets regularly to review market developments and convenes as needed to address major corporate actions.
It is the sole responsibility of the Index Committee to decide on all matters relating to methodology, maintenance, constituent selection and index procedures. The Index Committee makes decisions based on all publicly available information and discussions are kept confidential to avoid any unnecessary impact on market trading.