The Singapore Exchange (SGX) has teamed up with FinTech firm Smartkarma to launch a research platform aimed at easing communication and data reporting for institutional investors.
The C-Suite Pilot Program will allow SGX- listed companies to communicate with analysts and investors, monitor market sentiment, compare industry performance, and benchmark against peers.
SGX is the first exchange operator to join the platform and both organisations are seeking C-level executives and investor relations professionals of SGX-listed companies to provide input and feedback to gain better understanding of requirements specific to the market.
Head of equities and fixed income at SGX, Chew Sutat, commented: “The global investment research landscape is fast evolving with the emergence of self-directed and independent research, as well as new regulations resulting in a reduction in investment coverage by financial institutions.”
EC World Asset Management and its acting CEO, Goh Toh Sim, are among the SGX-listed companies to have already signed up to the platform.
“We are interested to participate in the Pilot Program to learn how digital solutions can help improve investor dialogue, data transparency and quality of analysis,” Sim said. “This fits into our efforts to improve governance and contact with the investment research community.”
SGX added the partnership is part of its push to raise awareness of listed companies and improve access to research information for investors.
The launch coincides with new rules under MiFID II which have banned asset managers from certain methods of paying for broker research, unbundling those research payments from execution fees, which were historically linked.
“This is coming at a time when banks and brokers are downsizing research desks due to regulation and cost constraints, resulting in a decline in the depth and breadth of coverage of certain stocks, assets and sectors,” said Smartkarma’s CEO, Raghav Kapoor. “C-Suite addresses this need in the market, strengthening information flows in a MiFID II compliant way.”