12/31/2015

More progressive news – The best stock market in the world

Hongkong has pipped New York for the top spot in IPOs listing for 2015. Not very sure where Singapore stood on this but we have heard that this is the best managed and regulated stock exchange in the world, or at least in Asia. And the SGX has been announcing increasing trading volumes for derivatives and its come is improving and making more millions, from trading bonds and other commodities.

These are healthy and positive news for the stock broking industry. Singapore has, in the last few years, transformed its stock broking industry into an industry of the future. Stock and stock prices have increasingly become irrelevant in the new business model. We used to have blue chips trading at $20 to $40, mid range stocks between $5 to $10, and cheap stocks between $1 to $2. Today our blue chips are trading at around $10, midrange around $1 to $3 and at the bottom, 1c to 2c or less than 1c. But this is changing fast as the new rules required the super penny stocks to consolidate, just like post CLOB Malaysian shares, 1000 shares became 10 or 1 share, to improve the prices to between 20c and 40c. It will look less ridiculous for the main board when the exercise is completed.

But these changes would mean nothing when trading activities is no longer there or needed. The exchange doesn’t even need investors or retail traders. The computers are doing all the trading and trading in derivatives. The net effect, there will be no need for stock listing. That speaks for the lack of IPOs in the SGX. There will be no need for traders and also no need for remisiers. Many have left the industry and many on the way. Broking houses are still doing roaring business without the need for remisiers and planning to retrench more in the new year. Some have started.

Have no fear, all these are just teething problems for an industry in transition to be better. In the new stock trading business, cannot call it stock broking business as there will be little broking activities left. The word stock would also become misleading if trading is all about derivatives. There will be no need for stocks, no need for traders, no need for remisiers, no need for broking houses. The industry will just have computers trading against each other on derivatives from anything they can write on.

The industry of 40,000 people would become very manpower efficient. The new business model would probably need less than 1000 people to provide the supporting roles mainly programmers and derivative writers and the rest run virtually by computers.

Singapore has embarked on the most innovative change in an old industry. Not sure what would be the new name for the stock exchange. Definitely there is no need for the word stock as stocks would be replaced by derivatives. Exchange may need to be changed too as it would no longer be an exchange but more like a computer game. I am sure the new name for this industry would be something fascinating and pleasing to the ear, futuristic like ‘You know ya’ or something like that.

This is progress. No other exchange could have thought of it. We are ahead of the world in transforming our stock exchange into something else, unheard of. That is how innovative we have become.

31 comments:

Anonymous said...

When they split the shares to trade at 1 share, the blue chips would also become penny stocks. They are preparing the stock market for children to play with their ang pau money. Cheap, cheap, cheap.

Anonymous said...

Rb // I am sure the new name for this industry would be something fascinating and pleasing to the ear, futuristic like ‘You know ya’ or something like that. //

Sinkieland's elites like #1 in everything?

Anonymous said...

Since SGX bldg I & II is located beside Boon Tat Rd .....

Anonymous said...

Typo ....

* Buildings I & II are located

Anonymous said...

How about calling it .....

Anonymous said...

No. 1 Boon Tat Xchange?

Like the recent No. 1 Seng Kang replacing Compass Mall?

And somemore FOC from MSN, no need pay $1,000 like in the Compass Mall name change?

Anonymous said...

Rb // Hongkong has pipped New York for the top spot in IPOs listing for 2015. //

Aiyo .....

What happened?

Sincity number 1 ...... from the bottom among developed economy?

Anonymous said...

No wonder previous ( Ang Mo ) CEO lost his job?

Anonymous said...


you don't know meh.....you don't know meh......

living in this very very very crowded tiny city state is like that lah.......

is like that, is like that.....nothing changed mah......

don't say anymore.......anyway 70% said ok.........

can only pray for the best in 2016.......all the best.......

cheers......


Anonymous said...

Rb // Today our blue chips are trading at around $10, midrange around $1 to $3 and at the bottom, 1c to 2c or less than 1c. //


Aiyo ......

What happened to City of Sins international competitiveness?

Why the more cheap labour the elites imported, the lower sinkieland sank in terms of its stock market capitalisation and it's exports international competitiveness?

Anonymous said...

They dunno basic textbooks economics?

Anonymous said...

Aiyo .....

What has the engineering trained "Limp Chow Khiang" been doing in MTI?

Anonymous said...

The elites ( especially MTI "Limp Chow Khiang" ) do not understand that "the agglomeration phenomenon" does not apply in the case of cheap imported labour?

Anonymous said...

So a bigger population mainly of low end cheap imported labour actually worsens the economy's competitiveness over time?

Anonymous said...

And the ( adverse ) effects of ( this misguided ) cheap labour import policy have already taken roots as reflected in the unabated rapid fall in sinkieland's NODX ( Non-Oil Domestic Exports ) in the past few years especially past 12 months?

Anonymous said...

And the economic ills are here to stay. ......

Anonymous said...

Aiyo .....

Like that ..... like that .....

2016 ...... Happy New Year .....?

Anonymous said...

Aiyo ..... the international financial elites think sinkieland economy not competitive as reflected in its stock market ( finishing only ahead of Greece in 2015, 2nd from the bottom among developed economies )?

But the elites claimed they very good leh ..... deserving of millions $$$ salaries, bonuses and perks?

And the 70% (daft?) sinkies oso think likewise given the way they voted?

Who is more correct?

The international financial market elites or the 70% sinkies?

Whose eyes paste stamps?

Anonymous said...

Aiyo ......

Can call "995"?

Anonymous said...

"One sick economy ...... oops ..... "patient" need emergency assistance "?

Anonymous said...

Aiyo ......

Hope won't kena same fate as the "Japenis economy " .....

..... needing and on economic "life support" for the past 2 decades?

Anonymous said...

Cheap is good, cheap labour, cheap stock prices.

Anonymous said...

There is nothing wrong with derivatives in the stock market.

Do you think there are LKY derivatives in the Singapore parliament?
Do you think the LKY derivatives are a good substitute for LKY?
What do you call politicians who derive their mandate to govern from LKY's Hard Truths?

Veritas said...

The dealer and remiser are destined to head for social security or beggarism for their next career path. Even with HST, the PC and internet has removed much need for middleman.

There is an on-going revolution to eliminate broker, not just in stock market, but also in retail, B2B, B2C.

And college professors-lecturers is going redundent with internet learning.

Anonymous said...

Yes Veritas.
It's called dis-intermediation or cutting out the middleman.
Do you think politicians are also like middleman?

https://en.wikipedia.org/wiki/Disintermediation

Veritas said...

Politician and states still have value, else she would have gone extinct or struggling with on-going extinction. This has not happen.

Anonymous said...

Rb:"This is progress. No other exchange could have thought of it. We are ahead of the world in transforming our stock exchange into something else, unheard of. That is how innovative we have become."


Liddat how? Better check out the Green Card? Anyone knows how to contact "Gopalan"? Someone mentioned he is very good and well-versed in the US emigration procedures

Anonymous said...

Politician and states still have value, else she would have gone extinct or struggling with on-going extinction.
- veritas

Our PAP politicians must be generating above average value and surplus;
- otherwise, how can they pay themselves the highest salaries in the world?

Anonymous said...

Aiyo .....

New Year's Eve ..... Cannot all about "bad things right"?

Let’s cheer up!

Look forward to enjoy the 8 mins fireworks ( $ well spent ) to usher in 2016 .....

And a good, happy, prosperous, stable and peaceful year for this little red dot

Anonymous said...

Ching Ho bells, Ching Ho bells,
Ching Ho all the way,
Oh what fun, to the bank,
On a white horse open legs.

Anonymous said...

Aiyo ......

East West ( Green ) Line at "crawling speed again" this afternoon ...... like yesterday morning?

Why liddat?

Raining some more?

On New Year's Eve some more .....

Is the "magic wan" working?