Stock market or casino?
The Australian Stock Exchange has made the most innovative decision to appoint the CEO of a casino as its head. They must have come to realise that the stock market has in all counts nothing but a casino. And they need a casino man with his experience in running a gambling den to manage it. Also, for a gambling den, the strong regulations are vital to protect the customers from being cheated.
In the same page of the ST today, the SGX was reported to tightening its enforcement of errant listed companies. It wanted to do more to prevent more failures. It would apply its rules and regulations to the letter and spirit.
Good sayings, and the problems are always with other people. Has the SGX contributed to the problems, or is the SGX the problem itself? Is there a conflict of interest in its pursuit of profitability and thus violating its own rules and regulations to the letter and spirit?
The introduction of high speed trading, programme trading and the plugging of these super computers into the trading system to trade against the small investors, is this fair trading? Is the playing field level as this is the key principle and spirit that the SGX is to uphold? Then there is the Dark Pool which violates the principle of transparency that is also another key responsibility for the SGX to uphold.
Has the SGX been operating under the same principles and rules and regulations that it is legally bound to uphold? If it doesn’t, who is there to ensure that SGX does according to its mission and role as the operator of a profit making body and its own regulator?
This is another case of who is to regulate the regulators and protect the innocent customers?