The big change, by SGX, is that client’s shares will be kept or be accessible by broking houses. Whether this is going to make the market better for the clients and the industry is a moot point. It could be all for nothing. What I don’t feel comfortable is the reason given in support of this change, because developed markets worldwide are doing it.
The important point to note is that the developed markets worldwide are sick. And we have adopted many of the practices of developed market and the big question is, is the market getting better or getting sicker?
When there is change, change must be for a good reason, for improvement. Change must not be introduced for the sake of change or because other people are doing it, and worst because developed markets are doing it. The developed markets created the toxic notes and sold many snake oils to the less developed markets too. What the developed markets are doing is not necessarily good for less developed markets, and may even be bad.
Is our market getting better or going to get better? I may be insane, but I am seeing many systemic flaws in the market. Maybe I am dull and cannot see the good and brilliant things that are happening in the system.