Research in Finance

CMCRC Finance Programme is geared towards an examination of market elements and structures to evaluate the impact and relation between:

  • regulation
  • information
  • participants
  • instruments
  • technology.

The Finance Research Programme seeks to provide a better understanding of market quality by examining the financial market's:

  • efficiency (transaction costs and price discovery)
  • integrity (insider trading, market manipulation and broker client conflict).

Information from financial research is used to inform both policy makers and industry stakeholders to deliver better outcomes for users of capital markets. It ensures optimal market quality.

CMCRC research also aims to realise the commercial benefits from innovation.

Finance Partners

CMCRC's finance partners include:

  • regulators
  • exchanges
  • brokers.

Research Partners who engage with CMCRC are able to efficiently and significantly boost their research capability and market quality.

Finance Tools

Our experienced, cross disciplinary team is made up of data scientists, finance domain experts and technologists.

Our solutions represent a multi-year, multi-million dollar investment in research, development and extensive industry testing. They support Evidenced-based policy making:

  • Assuring Market Quality
  • Securing Market Quality
  • Optimal Market Quality
  • Optimal Security Market Design.

Meet our finance academics

In addition to its core finance research staff, CMCRC also draws on the expertise of external partners, both individual and institutional. It also invites leading international figures to participate in its key activities.

Latest Finance Research

When the price of a listed security changes by an abnormal amount, the ASX typically issues a price query (PQ). There are two possible explanations for an abnormal price change.

In the US, shareholders can form a class action to sue a company under S10b-5 of the Securities Exchange Act for allegedly releasing misleading information, or for failing to disclose material information. The substantial cost of litigation, and its associated impact on shareholder value, has prompted debate over whether to reform access to the shareholder class action mechanism. However, the debate is as yet unguided by any study of the long-term financial impact on firms involved in litigation.

Solvency II is a European Union (EU) legislative program that introduces a harmonised insurance regulatory regime across the region. The program is one of the first insurance regulations in the world to follow the Basel Accord approach, with a 3-pillar structure that covers capital requirements, risk management and disclosure requirements. In Australia, the Life and General Insurance Capital (LAGIC) regime, which governs life and general insurers, follows a similar approach. In common with Solvency II, LAGIC adopts a risk-based approach for insurers, aimed at tailoring insurers’ capital requirements to their actual risk exposure. This is because the insurance industry is widely considered to be of systemic importance to the financial sector of the economy. This study focuses on Pillar 1, which deals with the capital requirements of the insurance regulations.

Capital Markets CRC Limited,
Level 3, 55 Harrington Street, Sydney NSW 2000, Australia.
t. 61 (2) 8088 4200