Some of you correctly read between the lines of David Langsam’s (Biotech Daily) perfunctory reporting last week, and ascertained that I was pissed off at him.
I was, though in truth I probably shouldn’t have been.
The problem is that David uses CommSecIRESS financial markets software for his share market reporting activities because he thinks that because of the volume of transactions moving through CHI-X, solely relying on ASX market open/close numbers to report stock price movement is inaccurate. He’s probably right but IRESS doesn’t seem to have its act together either. With David’s consent, here is the extract from the 27th of November Biotech Daily:
Last night’s edition reported that: “Tissue Therapies led the falls, down 0.6 cents or 12.5 percent to 4.2 cents with 10,655 shares traded.” Tissue Therapies director Dr Christian Behrenbruch told Biotech Daily that, on the ASX, the company fell one cent or 2.1 percent from 4.8 cents to 4.7 cents. According to the Commonwealth Securities (Commsec) website, reporting ASX data, this was correct, with 655 shares traded.
However, Biotech Daily uses Commsec Iress to report final prices and compile the daily market report, and Iress reports both ASX data and the Chi-X trading platform. Yesterday, Tissue Therapies traded the 655 shares on the ASX, but there was a later trade of 10,000 shares at 4.2 cents on Chi-X. Iress and Chi-X have told Biotech Daily that Chi-X is responsible for 20 to 25 percent of all Australian trading. Today, according to Iress, with the last trade on the ASX, Tissue Therapies fell 0.6 cents or 12.8 percent to 4.1 cents with 194,119 shares traded.
Biotech Daily is considering how to deal with the conflicting information from Iress.
Well, while Biotech Daily was trying to work out how to deal with conflicting information from CommSecIRESS, I was dealing with irritated shareholders that were under the impression that TIS share price did a double-digit nose dive two days in a row, when in fact this wasn’t the case. I was also trying to understand why a trade took place on CHI-X so far below the offer price on ASX.
Now, I think David is a high integrity bloke (for a journalist) and I understand his rationale. I also think that if CHI-X really is as big a deal as it is turning out to be (apparently now 25% of all ASX-listed trades), then the major financial markets software platforms need to ensure that a major alternative trading platform like CHI-X is properly data-synchronised with the ASX. By the way, TIS is not the only biotech company in recent times to have been hit by this situation – I note that both Invion (IVX) and Patrys (PAB) have also been hit when the last trade of the day is made on CHI-X but doesn’t report through to ASX until the following day.
Get your act together, CommSec…