8/06/2012

George Lim – SGX/SIAS wrong…



A letter by George Lim the the ST forum warned that it was wrong for SGX and SIAS to encourage the heartlanders to play the stock market. He reckoned that the heartlanders cannot afford to lose compare to the rich. And good shares are beyond them as there are too expensive. And with the rich and well informed also losing in the market, what chance do the heartlanders have to get a decent return in the market?

The first concern is easier to deal with. Just encourage the heartlanders to trade in derivatives. These are cheap and low cost trading instruments for the cheap heartlanders with not much to lose. And all it needs is to educate them on these instruments, hold more talks to equip them to trade effectively and successfully against the proprietary traders and fund managers.

Another area to educate the heartlanders is high speed computer and algo trading. SGX and SIAS may want to make it known to the heartlanders how these two mechanisms work and how they advantage or disadvantage the heartlanders. This is an important disclosure to the innocent heartlanders. They must know who and what their competitors are doing and whether they have a fair chance against the big funds and their trading machines. They must tell the heartlanders that SGX is providing a fair and level playing field for them to trade and their investments are safe in such a safe and fair system.

If I can remember, no one has ever come out to explain how high speed computers and algo trading can affect the small traders. Whose responsibility is it to keep the small investors educated and informed to protect their interests? Or the high speed computers and algo trading are just neutral and innocent mechanism that the small investors have nothing to worry about? In that case, there is no need to keep anyone informed. But if they could be as dangerous as toxic notes and minibonds, then the public and small investors must be duly informed and educated, and caveat emptor will then be more meaningful. Failing to keep the small investors informed of the dangers of these trading mechanisms and to fall back on caveat emptor is unjustifiable and unacceptable.

Have SGX, SIAS and MAS done enough to educate the small investors, particularly the heartlanders before they put their money into the system?

44 comments:

Anonymous said...

The best is don't let the heartlanders trade. The time and effort to be spent by SGX, SIAS and MAS to tell the heartlanders (although many of them nowadays drive Mercedes Benz with a condo renting out) the dangers of share trading is not worth the effort.

Let those who are keen to trade to go and find out for himself the perils and rewards of share trading.

Anonymous said...

The best thing is less government.

Give me back my CPF money.
Then please fuck off from my life.

Privatise all HDB flats.
Then please fuck off from my life.

Stop National Service.
Then please fuck off from my life.

You get the picture.

Anonymous said...

You bet for your life that they will leave you alone. They will do anything to make sure they decide how to spend your CPF money, buy their hyper priced flats, buy life insurance, buy medical insurance, next time buy funeral insurance....

Fat hope that they will leave you alone. Maybe you assign your CPF savings to them then they will say thank you and have a good day.

Knn, thought you will squander away your CPF. Now who is squandering it away?

Anonymous said...

Then no choice lor!
Have to vote Opposition lor!

Otherwise, they will never leave me alone.
It cannot be helped.

Anonymous said...

Heartland uncles auntiies trading Derivatives ??- sure die cock stand.

Anonymous said...

Yar, if lose money, sure blame here blame there, sue here sue there. What for ?

Matilah_Singapura said...

If this comes to fruition, we will see some great entertainment.

First we will witness a bloody slaughter never before seen in Singapore financial world, and those fuckers will deserve it.

Then you will also witness the emergence of "outliers" -- some of the most "unlikely" people will be magnificently successful, and probably be world-class.

These spectacular "outliers" will beat the unseen threats -- dark pools, HFT (High Frequency Trading) etc -- which, along with basic human stupidity and emotions of fear and greed, will wipe out the majority of Heartlanders who are essentially gamblers.

It'll just play out as yet-another-case of the stupid sheeple getting duped by a bunch of crafty ruling elites, which ends up in the same-o same-o S.S.S. -- Sheeple Self Sabotage.

I can't wait for the fun to start. :-)

Matilah_Singapura said...

P.S.

1. It is immoral to prevent people from engaging in legal financial activity -- even if they are going to do stupid things and wipe themselves out.

2. It is doubtful that there will be "less government" in Singapore. "Government" is the biggest domestic industry -- it has the most money, owns most of the stock market capitalisation, controls the laws, and vastly controls the lives of 5 million souls.

3. Voting for an opposition won't change the size of government, nor the interference by government.

4. CPF is a TAX, which is positive revenue to the government. No government will GIVE UP a LEGAL and vastly lucrative and reliable source of revenue. If the opposition candidate tells you otherwise, he/ she is a big fucking LIAR.

5. It is IMPOSSIBLE for CPF to pay everyone out -- "everyone" meaning those who claim that the money paid to CPF is "theirs" -- the fund will collapse long before most people get "their" money.

6. CPF / HDB mechanism is unlikely to go away anytime soon because many people continue to "benefit" from such a system. People (heartlanders) have increased their net worth FASTER than even those in Hong Kong thru many decades of playing the CPF / HDB Ponzi Game to become richer. It is not unusual to have a "die-hard Heartlander" living in his nice expensively renovated 5 room, whilst collecting rent from a couple of semi d's, maybe a bungalow here and there, or a portfolio of condos or some overseas property. No prizes for guessing which party these lucky fuckers will vote for ;-)

Veritas said...

Need to escape the heat I received in Lucky Tan's comment. So tonite I comment in RB's blog. PAP's troll give me 100 spam on penis...knn in LT's comment, and it look at I am be attack by a team of internet brigade. Sometimes I really feel proud I can make them response in such a way.

I believe the financial market has lost 100% of credibility and its going to collapse soon. I form this opinion upon the outbreak of Liborgate. Anyone who trade forex or who is more sophisticated in trading stock will fully grasp the gravity of the situation. All MSM today are downplaying the issue and deep analysis of this crime is unexistence.

Put it simply, Libor is interest rate fixed by major banks who have presence in London. It is the foremost indicative index of interest rate in the whole world. A whole lot of derivative are formulated base on Libor. If Libor can be rigged, what cant?

Liborgate will not be the end of the scandals. It is be more to come. I believe we are heading for a total collapse of current world order. Be ready for a rough ride for next decade.

GOOD LUCKY everybody.

Chua Chin Leng aka redbean said...

Hi Veritas, they acted like machines. All you need to do is to press the right button and they will run amok. Or if they don't, their supervisors will. And they will go crashing and knocking at everything along the way.

Remember, press the right button and they will go crazy.

Anonymous said...

SGX/SIAS wrong?

What can You do?

Anonymous said...

No need to do anything.

Just stop gambling(investing).

Simple right?

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