2/25/2014

Short sell reporting a prudent move

Goh Eng Yeow wrote about the plans by SGX to level the playing field to require short sellers to report their short positions. This is a fair statement to keep all investors posted with timely information of what the big boys are doing in the market. The important point is that the information will be made available to all in a timely fashion and not some that are privy to information to take advantage of those that are in the dark.
 

The SGX has another disclosure measure introduced last year that required investors to indicate their short positions as and when executed in the SGX system. The purported objective is to disclose such short positions to the public and investors, another level playing field effort. All short positions will henceforth be reported by SGX the next day. This seems very fair but is that so?
 

What happens is that for those computer traders who have their super computers plugged into the SGX system will have immediate information of any short positions and could capitalize on it instantly. They don’t have to wait till the next day to know the short positions. They have real time short selling information to take advantage of.
So, is there a level playing field? With computers plugged into the SGX to have real time information when other small traders do not have, how fair is the system? 


Is there an elephant in the room?

6 comments:

Anonymous said...

With computers plugged into the SGX to have real time information when other small traders do not have, how fair is the system?
RB

Alamak, where got fair one?

How to be fair when there are daft, poor and suffering Sinkies, not just small Sinkie traders?

So like that where got end to unfairness, u tell me lah?

Anonymous said...

Is there an elephant in the room?

Yes.
What are our profits & losses at Temasek Holdings and GIC?
We want to know whether we should vote PAP or not.

Anonymous said...

It is okay for the big computer traders to know who is shorting. The system is like that so cannot be helped.

Matilah_Singapura said...

No such thing as "level playing field" lah. That is a phrase just to keep some people 'happy' -- i.e. those who habitually indulge in wishful thinking.

Information + super computer = power in your favour.

Anyway, algo trading is here to stay. Embrace it. Learn it. The maths and physics geeks (the quants) RULE the finance industry now. Arts graduates, econs majors -- time for you all to get the fuck out and learn a skill like "hairdressing". If you can't do high level math, you don't belong in finance ;-)

Anonymous said...

Just wait for the day when they are all put behind bars.

Anonymous said...

Matilah Singapura, don't leave home without it. I mean your brain.