6/18/2015

Open letter to CEO Loh Boon Chye


The most important question everyone needs to know about computer trading, algo and HFT, with computers of external agencies plugged into the SGX system to gain access to information that other investors did not have, to be able to use high speed computers to trade ahead of the masses, would these advantages be construed as unfair trading like having insider information? And if the use of computer trading to gain access to information not available to the rest of the investors is a violation of the SGX’s principle of providing a level playing field, and is a violation of SGX’s by laws, should these still be condoned? Is the SGX in breach of the bye laws?

If the answer is no, then by all means continue to allow the computers to be plugged into the SGX. If yes, the new CEO should not want to be a party to it as it is only a matter of time before SGX is sued for this breach of its bye laws. As the new CEO, it would be prudent to review this practice and confirm that there is no breach of any bye laws. If this practice is wrong and not stopped, then the new CEO would also be culpable for allowing it to continue under his watch.

Is computer trading a violation of SGX’s mission, principles and bye laws on fair trading practices and insider trading? Are the rest of the investors put in a disadvantage position because of these computers in the system?

12 comments:

算了吧! Let it collapse on them eventually. said...

Ha ha ha ha ha ..... Rb, u are chasing a lost cause .......

ℳatilah_$ingapura said...

@ RB:

>> o be able to use high speed computers to trade ahead of the masses, would these advantages be construed as unfair trading like having insider information? <<

The jury is still out on this question. High speed computers are an advantage. Whether this is "fair" or otherwise....well...good luck on getting a STRAIGHT answer on that.

>> Are the rest of the investors put in a disadvantage position because of these computers in the system? <<

Probably. However, being disadvantaged still does address the issue whether it is "fair" or not, and also who says market activity needs to be "fair"? Foe.g. there is no such thing as a "fair" price. There is the market price. That's it.

Anonymous said...


I sincerely afraid to talk about SGX!

YES! Afraid! Very Afraid! Very Very Afraid!

Don't ever talk about SGX, please!

SGX sgx sgx sgx.....0000ooooooooooooo........

Anonymous said...

True or not?
There is only one important bye-law:
"What's wrong with collecting more money?"

Singaporeans who disagree - please either fuck off to another country or vote Opposition. There is no third way.

patriot said...

How can it ever be UNFAIR WHEN NO ONE FORCES ANYONE TO PLAY SHARES.

YOU GAMBLE WITH YOUR EYES AND EARS OPEN WIDE AND BIG LEH.

AND HOW CAN SGX BE AGAINST ANY STOCK TRADING LAWS WHEN ITSELF IS STIPUKATING ALL THE RULES.
Anyway, the First Caveat that the Gamblers are NOT forced to play stocks and that the SGX is TRANSPARENT with it's operation means YOU GAMBLE AT YOUR OWN RISKS.

patriot

Anonymous said...

If the answer is no, then by all means continue to allow the computers to be plugged into the SGX.
RB

Of course no lah, as decided by authorities bigger than the SGX CEO.

If RB think it is yes and want this violation stopped, then for a start, I suggest RB contest the coming election, and best on a PAP ticket. Why PAP ticket? Because there is a 93% chance of winning, as opposed to only a 7% chance if RB stood on an opposition ticket. Might as well remain as blogger and commission no enough remisier.

Anonymous said...

Redbean is implying that the Casinos are PROPERLY(LEGALLY AND MORALLY) RUN?

Anonymous said...

The new CEO is not a party to the illegal plug in of computers. Hope he has the sense to pull it out and not be implicated.

Anonymous said...

This fella is not 3-year old

Anonymous said...

The unfair trading by computers will be called a crime sooner or later. When the music stops, whoever is the CEO will be left standing.

Anonymous said...

Is the SGX in breach of the bye laws?
RB

Just because RB, or even u or me think so?

Anonymous said...

A crime can be no crime.
A no crime can be a crime.

Uniquely Singapore.