Hi Dangar, Great post. You are right; companies do not make an...

Hi Dangar,

Great post.

You are right; companies do not make an application per se but they, and other companies, can and do make representations to the ASX if they feel they maybe close or could/should be included.

And now's the time to do it because the liquidity numbers wont look that good in 2 months time (unless FAR's volume starts to spark now for the next 2 months....and it well could). Note that the huge volumes during the discovery periods are still included in the 6 months rolling average. These anomalously big vols were really evident in Sept and Oct last year and get included in the 6 month rolling average (which is the benchmark average looked at by the ASX for liquidity).

The maths here is important because if we took the liquidity for the past 2 months (since beginning of the year), FAR would actually have the second lowest liquidity of the group at about 0.32%. But the absolute number isn't as important as its relativity to its peers and the market in general.

So GR is very correct in pushing the relative liquidity of FAR now ahead of the March rebalance.

Yet I'm not sure why he felt it was needed to go public with this. When a coy makes a submission to the ASX, on this basis, its always done in private (I cant recall ever seeing a public push for index inclusion) and that's the way the ASX, like any other 'regulatory' body, prefers to operate.

Anyhoo, here's hoping the rather public reminder to the ASX helps....(maybe it has already)

Cheers,