NASD Launches the Unlisted Securities Index [“USI”]..

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Saturday, August 01, 2015 06:05 PM / NASD OTC


Twenty-Five (25) months post opening and trades on the NASD OTC market continue to increase in deal volume, value and frequency.  After more than 60 days of consecutive trading, sporadic deals and price volatility are being replaced by consistent trading and steady price making. 


The NASD appears more convinced that a price index at this point will closely reflect investor sentiment about unlisted public securities.  They also expect it will provide a useful guide to the larger asset managers who are interested in investing through the NASD OTC market.  (Of course, chartists are witnessing the beginning of an exciting study on unlisted securities!) 
 
The Unlisted Securities Index is adapted from the Value-weighted approach for calculating market indices. Rather than using a total market capitalisation of each underlying company as a weight, the NASD shall use the capitalisation of the dematerialised securities.  This way, the NASD hopes to get a closer representation of the size and pricing of ‘available to trade’ securities. 
 
By applying this unique approach, a relatively small shift in the price of a significantly dematerialised security will understandably have a more pronounced impact on the index than a less dematerialised security. 
 
The NASD index shall start from the first day of August (opening prices of August 3, 2015 ) at a base of 1000 and shall be updated daily.  The index shall be available on the NASD website


New Participating Institutions (PI) and authorised traders JOIN the NASD OTC MARKET


Two (2) new Participating Institutions and seven (7) Authorised Traders joined the OTC Market during the week. This followed the approval of the firms and successful induction of the Brokers. This brings the number of Participating Institutions and Authorised Traders on the OTC platform to one hundred and two (102) and one hundred and seventy (170), respectively. They are:





* Not in the table previously
  
- Active broker/dealers: 94
   -
Inactive broker/dealers: 8
   - Total broker/dealers: 102

The top 5 trading securities on the NASD OTC in 2015  (YTD- 31 July 2015)



The OTC Market in Numbers (YTD - 31 JULY 2015)


 

The Closing Prices as at 31 July 2015 on the NASD OTC Market


Legend:
d --->
decliner
n --> no change
g -->
gainer 

 

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