10/27/2015

The equity casino is going to draw its curtain soon

Agencies reported that Stanchart has announced that it ‘is closing its equity derivatives and convertible bonds businesses.’ This is a follow up on its earlier announcement ‘to axe thousands of jobs globally as it dismantled its stock broking, equity research and equity listing desks.’

What this news is saying is that a big global bank is finding it tough to make money in equities, bonds and derivatives and finds it necessary to close down these businesses to cut losses. Is this move a trend that is also affecting other big banks, and what does this portend for the industry and the stake holders like traders, remisiers, research and backroom staff? Would Stanchart be the Pipe Piper leading a trail of banks and broking houses following behind to close down the same operations and cut staff?

It is strange that Stanchart is cutting down on equity derivatives when this instrument is supposed to be gaining popularity with rising volumes in daily trades. Or is it that Stanchart is underperforming the market and losing money while other players are laughing to the banks? What is the truth?

The truth will come in the next few months if other banks continue to trade happily in equity derivatives or starting to cut cost by axing their staff in equity and derivatives. The analysts and research staff would also be on the laid off list.

Wither the stock market and derivative industry? Is it flying high or sinking in quick sand?

6 comments:

Anonymous said...

Wither the stock market and derivative industry? Is it flying high and sinking in quick sand?
RB

Whatever lah, and the Sinkie opposition will still not be ready to be govt, and the streets will still be peaceful and safe. So life goes on as usual lah, just like they had for the past 50 years.

Anonymous said...

No matter how bad the stock market and derivative industry or even the economy, PAP will still win an election with at least 90% seats, the streets will still be peaceful and there will still be lots of foreigners, and with more wanting to come. And also there will be haze again, after the current haze has cleared.

ℳatilah_$ingapura said...

Wonderful! Great to know that DISRUPTIVE TECHNOLOGIES are doing their intended work of CREATIVE DESTRUCTION---i.e. forcing the extinction of nonviable commercial operations.

Retail banking? WTF? How many people go to the bank now? Most banking is done online, or at the ATM. So...close down, or downsize the retail side. Trading? Fuck lah. Online trading offers much more competitive brokerage rates.

The market is broken up with so many smaller players competing with each other, and the Big Boys offering everything from training and research to trading.

Human-based trading is way down. The bulk of the trades in markets are now algorithmic, and the trading volumes are increasing.

Stan Chart has always struck me as a stodgy old, stuck-in-the-past English bank.

Anonymous said...

You see, the stock market and derivative industry going downhill also blame the oppostion. What kind of fucking logic can come out of the head of come sinkies I cannot understand. No wonder we need two education ministers to oversee our first world education system.

jjgg said...

If I have my way, I'll have a Minister for each student in Singapore .. The total costs more than offset by getting rid of all the teachers,principals n the cats sleeping in MOE...anything wrong with my idea?

Anonymous said...

????? Who is blaming the opposition for the problems in the stock market?