COE quota will be based on rolling average of deregistered vehicles over 2 quarters to reduce volatility: LTA

SINGAPORE: The method designed for computing the quarterly quota for  Certificate of Entitlement (COE) bidding will be altered from the August soft, the  Land Transport Authority (LTA) announced on Friday (Jul 22).

This is to “reduce the particular quarter-on-quarter volatility of COE supply while being responsive within returning the COEs of deregistered vehicles to the bidding pool”, LTA said within a media release.

Under the current system, the quota of  COEs available for bidding in each quarter can be primarily based on the number of vehicles deregistered in the last quarter, with an one-month lag time regarding processing and computation.

“With effect from Aug 1, the amount of COEs available for bidding in each quarter will be based on a moving average of deregistrations over the last two sectors, ” LTA mentioned.

“The start of each new COE quota bidding time period will continue to be one month after the close of each work schedule quarter. ”

For example , the number of COEs for that upcoming August to October quarter is going to be half the number of automobiles deregistered from The month of january to June.

The number of COEs for that following quarter, November to January, will likely then be half the number of vehicles deregistered from April to September.