Financial Quality Index (FQI): A New Index to Assess Financial Market Quality
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Once the financial crisis started in the middle of 2007, the financial authorities and governments of developed economies, based on the premises of the market's security, efficiency and transparency towards investors, began to emphasize the importance of estimating the systemic risks over the risk of a given sector. Beyond macroeconomic strength, if they have higher quality equity markets, countries should be better prepared to cope with potential volatility. The current work develops a new index (FQI) that shows, in an objective way, the degree of maturity and market stability, in particular for the Spanish equity market. The authors would like to thank Dr. Joan Hortalá, President of the Barcelona Stock Exchange(a)Domingo García, Director of the BME Study Service, Beatriz Alonso, Equity Director of BME, Alejandro Gómez and Victor Naranjo, members of BME equity supervision, Andrea Gómez and Alejandro Ramón, members of the Barcelona Stock Exchange Research Service.
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