Benefits of Co-trading: Evidence from Australian and Singapore Stock Exchanges

Abstract

Dichotomous comparisons of evenly-pivoted pre- and post-event windows that co-trading of 38 stocks each from the Australia Stock Exchange (ASX) and the Singapore Stock Exchange (SGX) accrues asymmetric benefits for stocks of the Singapore Portfolio risk decreases and return-per-unit-risk ratio increases for SGX and post-co-trading, and they show no statistical significant change for the stocks of the average individual stock's total risk, systematic risk, and idiosyncratic risk all for SGX stocks after the introduction of co-trading, but not so for the ASX Trading volume and bid-asked spread, however, show no statistically significant for both bours pre- and post-co-trading. The ASX unilaterally terminated co- taking less than 3/4 years.