Disclosure

Unfortunately we are not talking about the English brothers who make electronic music. This week we are referring to the regulations relating to a timely release of information for investors. I mentioned last week that due to some regulations the efficiency in a market can be effected. Continuous disclosure is the biggest regulatory factor that would affect the efficiency. Therefore, I feel as though you should at least be aware of its existence, even if you do not know the specifics.

In Australia to comply with the ASX regulations, companies must continuously disclose all pertinent information. With a quick google search of; "ASX continuous disclosure requirements" you can find all of the specifics for what needs to be disclosed. However, I believe it is rather well summed up in this sentence.

"Once an entity is or becomes aware of any information concerning it that a reasonable person would expect to have a material effect on the price or value of the entity’s securities, the entity must immediately tell ASX that information."

If you have read the post before this on market efficiency, it should be pretty obvious that if complied with, this should dramatically increase market efficiency. There are many specifics in what a reasonable person would and wouldn't expect to effect the share price, but also where a trading holts and other situations can occur. I found this abridged version particularly useful for summing up the key points concisely.

http://www.asx.com.au/documents/about/abridged-continuous-disclosure-guide-clean-copy.pdf

As always, if you are interested in additional information either follow the link I provided or feel free to shoot me an email.