LTA to adjust COE quota calculation again to reduce supply volatility

LTA to adjust COE quota calculation again to reduce supply volatility

COE QUOTA FOR FEBRUARY TO APRIL

The COE quota for February to April is going to be 9, 437. This can be a 3. 4 per cent increase from the  9, 128 COEs in the previous quarter .

Bidding under the upcoming contingent will start on February 6, said LTA.

Under the prior method, the subgroup for the February to April period is a lower figure associated with 8, 695, a positive change of 7. 9 per cent or 742 COEs.

The next quota announcement for that bidding period of Might to July will be made in April.

After the adjustment within calculation method a year ago, specialists told CNA that COE price peaks may not be as high as they will be under the present counting method.  

However ,   COE price troughs will also not have to get as low as they would are actually.  

Prices would still likely increase, but at  an inferior extent compared to the present rules. Together, these reduce the volatility of COE prices.

At the time, the experts suggested how the new  counting method had probably been introduced due to concerns over accidental fluctuations in obtainable COEs and the knee-jerk reactions from bidders.