2/25/2015

Saving SGX




It took two petitions, one online and one offline, to pack Magnus Bocker off. SGX announced yesterday that he would be leaving by end of June. The important task at hand is how to save the SGX from the ICU? The state of denial that all is fine is not an issue to MAS. The main problem is whether MAS sees any problem with the pathetic or critical condition of the stock market. Is everything doing fine, more new investors signing up, more derivatives being traded good indicators of the health of the stock market? Or would the MAS look at the number of investors really trading and the value of trades done in the equity market, the number of remisiers leaving the industry,  and the pittance in commission being generated?

There cannot be any real solution to the dying stock market if the cause or causes of its demise are not diagnosed. Does anyone really know what is wrong with the stock market, wants to know what is wrong with the stock market and to do an overhaul of the failed system? Yes, it is a systems fault, its problem is systemic, not no lunch break, not smaller lot size, not super penny stocks, not dwindling volume and disappearing investors. These are only symptoms of the cancer that is crippling the market and would go naturally if the real cause of the failure is identified.

If MAS is still wondering where to start, go to Shanghai. The Chinese have been studying the American model of stock trading and knew exactly what is wrong and are not going to repeat the same mistake. They are offering Shanghai and Hongkong as the alternative system where computer trading involving super computers in HFT and algo trading would not be allowed, where large scale manipulations would not be allowed. They are returning to the basics of stock market operations. There is an article ‘China now gives investors an alternative to (the)manipulated HFT U.S. stock markets’  at www.examiner.com.

Computer trading with high speed computers plugged into the main system of a stock market is simply unfair trading, giving unfair advantage to the computer operators to manipulate and rob the rest of the investors in broad daylight.
And the last thing the SGX should do is to go globe trotting to hunt for another foreign talent to replace Bocker. It would be a replay of the pathetic story all over again as most of these talents would still be sold to the American model of computer trading and all its fraudulent ways.

The MAS is faced with a mammoth and arduous task to quickly disconnect all the toxic cables connected to the SGX main trading system. These external computers are like parasites sticking to the main trading system and sucking everything, every dollar from the investors.

The stock market must go back to its original role as a source of funds for the industries and not a casino. It must not be turned into a cheap gambling system for boys and girls to play with their pocket money. The boys and girls can go and play monopoly. The stock market is for the adults to invest, for the industries, the corporations to tap as a source of fund for growth and expansion. They can’t get the funds from little children in the schools.

The stock market must be X rated and not PG13.  The broking houses and the Society of Remisiers must use this window to work with the MAS to find a real solution to the serious problem the stock market industry is facing. Make the stock market do what it was originally supposed to do. We already have two casinos and there is no need for a third casino. The broking houses and the MAS have a common interest to want to see the stock market back in the pink of health.

What is the point of having more boys and girls signing up as potential investors when they are not investing? It is time to be real. Or would this opportunity be wasted and everything back to square one with the hiring of another foreign talent to do the same thing all over again, with the stock market fighting for its life in the ICU?

22 comments:

Anonymous said...

Another failed foreign talent being paid top foreign talent renumeration. Remembered before Fu Hua they hired another supposed top FT who was my broker from Chicago to be CEO. This gahmen was crazy about foreign talent 20 years ago....what kind of due diligence!! We has been taken for a ride.

Anonymous said...

They are looking for another foreign trash. No Sinkie good enough.

patriot said...

Does it really matters if SGX is not available for companies to seek funds.

Thought companies can be listed anywhere, if the Companies themselves are qualified to be listed?

Is the Average Sinkies affected if SGX kaput for whatever reason. I am just thinking as a peasant that if the Casinos are not built, less families are destroyed and individuals need not have committed crimes or suicides which is oso an offence by itself.

patriot

Chua Chin Leng aka redbean said...

Without a stock market, companies looking for funds to support their operations, growth or to tie over short term financial problems would have to go to the banks and may not be given the credit. The existence of a stock market is vital to the health of all the industries and thus jobs for the people.

You may have the privilege to see the consequences of a collapsed or dysfunctional stock market.

Anonymous said...

Is the Average Sinkies affected if SGX kaput for whatever reason.
Patriot 9:44 am

Yes, if only the average Sinkie is like RB. But luckily it is not, and for sure less than 40% of all Sinkies.

Anonymous said...

You may have the privilege to see the consequences of a collapsed or dysfunctional stock market.
RB 9:59 am

I thought from what and the way u wrote, it already happened to SGX?

But is there any protests on the streets or even legally in Hong Lim Park about it? Or make the SInkie opposition more resolved to get ready to be govt to solve the problem?

Anonymous said...

Simple Simon pretending to be clever ya.

Anonymous said...

RB, election coming and the IBs are back. Suggest you put in an app to filter out their IP addresses like you did before. This will come in useful when you need to use them as evidence later.

More will appear.

Matilah_Singapura said...

@ examiner dot com: >> China now gives investors an alternative to (the)manipulated HFT U.S. stock markets

Yah lah...this is for the moment only lah. It is designed to build trust and attract capital (aka business). Later on, I guarantee it will change and HFT will be introduced...a little at a time of course.

WHY? Because HFT, although controversial WORKS DAMN FUCKING WELL. HFT and Dark Pools aid market efficiency and liquidity, and of course on-going nano-second to nano-second ACTION. The Chinese are not stupid lah. Now they are drumming up business...that's the present goal. But in a few years, definitely within 10 year time frame, rest assured there will be HFT on the China bourses.

The HFT genie is out of the bottle already. Sure, there will be some forms of "regulation" by the securities police, but dream on if you think the "good old days" are going to come back.

>> The MAS is faced with a mammoth and arduous task to quickly disconnect all the toxic cables connected to the SGX main trading system.

Wishful thinking lah uncle. I'll bet that they are actually planning on upgrading the computer infrastructure to attract more business :-)

I would say that in recent times dark pools and hedge funds offering/ using such "services" have grown in Singapore.

Algo trading is here to stay lah. The Geeks (i.e. the people who are top in science, maths, computer tech) will RULE THE EARTH!

Anonymous said...

'Because HFT, although controversial WORKS DAMN FUCKING WELL. HFT and Dark Pools aid market efficiency and liquidity...'

For whose benefit?

Anonymous said...

The stock market is like the Casinos. Sinful. It will be better if the SGX close down. Nobody will lose money speculating.

I believe if one is for the closing of the casinos, he will be for the closing of Sgx as well.

Anonymous said...

Singapore going to offer one more multi million dollar job to the citizens of the world.

One more foreign talent is going get rich quick in the next few months and may stand to earn $10m to $20m when the contract ends.

Where got Singaporeans good enough for such a good job? This guy is going to bring his relatives and friends to join him soon. He may offer them a few good jobs along the way too.

Some rich Singaporean can rent his posh apartment to him and earn some money too.

All the foreign talents are standing up and hoping for the largesse. Everyone must be busily telling his pals about this good offer coming up.

Anonymous said...

Losing money in the stock market is a painful experience. Families break down, some serious ones even driven to suicide. Having a stock market exposes you to global financial meltdowns.

Now that this Bocker is gone, we should employ a local who can take care of the average Singaporean. No more employing those FTs. He must be local born and bred. He must make the stock market more vibrant, more activity, more trading, yet more safe to trade. More safe as I mean the average investor cannot be easily swindled by the sophisticated investor who hides behind computers. Once the local retail investor has made some money, he will have the confidence to trade more and active.

The most important is that the locals must make money. If not, why would they trade in the first place ? This is a very important that the Government must ensure.

Matilah_Singapura said...

@ blur king 1155:

>> For whose benefit?

For those who not only paid attention in maths class, but went beyond the syllabus and became damn good at it, whilst the rest of the class was fucking off playing video games and talking cock ;-)

Late on in life on these "losers" grow up and then go write on blogs on how "sinful" and "evil" money-making people are, and moan and groan on how "unfair" life is :-)) Once in awhile they'll go down en masse to places like Hong Lim to talk more shit to like-minded idiots, but the fuckers who are making money just keep on making more money.

IMO, I think life is very fucking fair.... it rewards those who deserve it and punishes those who don't.

Got meritocracy?

virgo49 said...

Right, right
Just convinced them in the interviews, everything also can,

You want the moon, the stars I shall deliver to you

Based on my past contacts, experienced no problem !

(I got no capitals involvement there, after contract over , Just slapped my backside and scooted off.

Monies, big monies in my pocket!

Bye bye

Anonymous said...

After Madness and Bonkers, we will definitely get another overpaid and underperforming FT to mess up the house further. Stock mkt is dead, young people seems more interested in their mobile phone than anything else. Old foggies are fading and have lost enough money. That was what that mad and bonkers guy did to us.

straycatsgp said...

Hi Redbean,
(AngMoh here)
I think there' some misunderstanding about HFT (go to Wikipedia to have a better understanding)
HFT basically uses the advantage of very high speed computers to "intercept" a trade between buyer and seller, and make a very short profit from the knowledge of the trade.
The normal traders are not affected by this. E.g if I buy 100 shares of AAPL @ 131.88 I will get my shares at the prices, regardless whether some HFT made some money in between. If you read the Wikipedia article you will see that HFT traders compete with other HFT traders but do not affect the traditional traders. As such they do not "manipulate" the markets as you imply.
Whether HFT trading is ethical is a completely different issue. I tend to think it is not quite ethical, but that is for the powers to be to decide.

Anonymous said...

Maybe they will bring back more goodyears or more goodvalues.

Chua Chin Leng aka redbean said...

Hi straycatsgp, welcome again.

HFT is not as simple as what they want the public to know or what they told the daft public. Once you have someone with his super computers plugged into the main trading system, he has all the information he wants to do anything to his favour. The supercomputer operators who paid millions for their machine would not be using them to earn a few dollars. The returns must be big enough to justify the whole process of capital acquisition/outlay, employing computer experts and traders.

They cannot survive on arbitraging. Even when they did an arbitrage and made money, someone must lose money.

Trust the Chinese. They are not stupid and they have done their homework. There are helluva manipulations in the system, including all the derivatives they wrote to move prices. It is very complex.

In this game, when someone makes money, someone loses. The more someone makes money, the more someone loses.

It is a zero sum game.

Anonymous said...

I am extremelly happy he's gone. Should have got rid of him years ago. Now get a true blue sporean to run the show.

Anonymous said...

Fandi Ahmad, Quah Kim Song , Png Eng Huat , CSM or LTK ?

Most important, I must make money.

SGX stock trading said...

Great and potential market news of Singapore exchange (SGX), helpful for capital market traders and investors.