SINGAPORE: Singapore Exchange (SGX) and the Economic Society of Singapore (ESS) have partnered to launch the SGX-ESS Essay Competition that encourages participants to analyse and debate on how the networks and mechanisms of price formation are likely to evolve in the future.

Markets are collections of individual sellers and buyers determining the prices of goods and services to enable transactions. This price formation and discovery is a key function of any benchmark market and has typically been centralised for millennia.

With the question of “What is the future construct of price-formation in the ‘computing fog’”, the competition invites participants to examine how these networks and subsequent price formation are likely to evolve in the future, with mobile devices becoming more ubiquitous, powerful and even more connected at the edge of the computing network. Specifically, participants are encouraged to explore whether we are likely to see a shift towards decentralised and even fully distributed transactions and marketplaces. The implications for rule-setting, regulation and auction design for a well-governed, decentralised market should also be addressed.

Such economic research, insight and ideas could positively contribute to the development of capital markets, especially given how fast technology advances.

The essay competition is open to all residents in Singapore and overseas Singaporeans. ESS has organised essay competitions since 2001, attracting more than 2,000 entries over the 20 years. Other partners include the Monetary Authority of Singapore and the Competition and Consumer Commission of Singapore.