The Australian Securities Exchange (ASX) is introducing a new program to subsidize research into small companies, with the hopes of providing high quality, independent research of ASX-listed companies with market capitalization under $1 billion, according to a report by The Australian.
Although junior listed companies have traditionally been under-researched, they represent 92 per cent of all companies listed on the ASX. The year-long trial comes with a $1 million budget, with plans for a longer-term, $10 million a year program.
Singapore has a similar program in place, organized by the Securities Investors Association of Singapore. The London Stock Exchange announced a similar scheme in partnership with IIIR in 2008, and NASDAQ OMX signed a deal with Morningstar to provide issuer-sponsored research in 2010.