SGX asking for public views
The SGX is asking the public for views on whether it is ok to let banks become trading members, ie full time brokers to trade in stocks. Is this a fair proposition to ask the public? In the case of locking up the people's CPF savings through minimum sum, CPF Life, locking them up in the Medisave, the public's view was not sought. They just do it without any need for consultation when it should as the people would have a lot to say on their own money and things affecting them directly. The issues were then more easily understood. Here we have a financial issues that have implications and consequences beyond the layman in the street. Only the academics or finance professionals would be able to give any reasonable views and inputs. But these people are unlikely to waste their time as their time and effort are expensive. So who does SGX expect to respond to their invitation for views on such a technical issue? It will be more meaningful for Sheng Siong to ask the public if it is ok for them to take over the wet markets and change them into something else. It would be more meaningful if Teo Ho Pin and other MPs affected by this wet market issue to ask their constituents for views and feedback. The public can only make reasonable feedback on things that they can comprehend at their level. The talents at SGX should be in a better position to decide whether the banks should be allowed to dabble in stocks. Is there a conflict of interests? Should banks be allowed to deviate from their core business into other high risk areas? How would it affect the businesses of other financial institutions? Would there be unfair advantages or unlevel playing field? How would it affect the jobs in the industry? How would it affect the stock market as a whole? And there are many more issues related to this move, ethical, moral and administrative etc etc. The answer is best answered by the professionals paid to do the job.