More remisiers needed?
SGX wanted to boost the strength of remisiers by another 1000. Several broking houses are in the market looking for another couple of hundred remisiers each. Aren't these going against the conventional wisdom that the stockmarket shall go online and there is no need for remisiers? There was a time when the mantra was that machines could replace the role of remisiers but now we are hearing calls for more remisiers. Wonderful! Does it work to have more remisiers? Looking at the volumes traded in the market, at times as high as 2 billion shares daily, many of the remisiers were waiting for their phones to ring. Long were the days when the phones were ringing non stop once the trading volume hit 1 billion shares. What's happening? And the past few days the volume dwindled to less than a billion, and yesterday was the lowest to date, at 788 million shares. What were the remisiers doing? Swapping mosquitoes? Now, if the volume is going to be so anaemic, what would the addition of another 1000 remisiers do to the market? More volume or the same volume divided by another 1000? I have written in the past that once the retail investors have been sent to the cleaners, the next will be the remisiers. And when the remisiers too are emptied of their pockets, the funds and trading houses will only be trading among themselves. And looks like this day is getting nearer than I anticipated. How did the market get to this pathetic state? What is wrong with the market or the system? Is the system healthy or sick?