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3/18/2015
MAS and CAD to probe market misconduct
This is a good piece of news for the stock market. The dying stock market would need a complete cleansing or detox if it is to regain its health. The question is to diagnose the cause of the deadly problem. Is it cancer or cough and cold? Is it such some superficial skin rashes or rotting in the core? Without a proper understanding of the real cause of the problem, without a will to tear off the rotting parts, we may end up with another round of cosmetic changes while the market continues to be kept alive with mechanical ventilators.
It would be good if the MAS and CAD start a thorough review of the SGX trading system, what HFT and computers plugged into the SGX main computers are doing, what advantages are they having and whether they have compromised or violated the Exchange’s rules and regulations on fair trading.
The NYSE is rigged and acknowledged by an ex board member. Does our Exchange have the same problem? MAS and CAD must ensure that our system is not the same as NYSE, it must be absolutely be free from rigging. There is something very sick with the system and unless the real cause is flushed out, the market will not survive for long. It is also very sinful and wicked at this point in time to encourage the young and innocents to put their hard earned money into the market.
The MAS and CAD are in a very favourable position to know what is going on and to save the market before it is too late. Do the necessary and not the unnecessary. The viability of the market is at risk and there is a clear and present danger that it would be destroyed if the parasites and viruses in the system are not eradicated.
It is high time that all the tubes and cables attached to the SGX main computers be unplugged or chopped off. This is the likely cause of the cancer that is killing the market. Ignoring this problem then MAS and CAD would be wasting their time and resources and be as good as chasing after shadows. Look inside first before going on a wild goose chase. The problem could be systemic.
Singaporeans need to understand HFT or "high frequency trading".
ReplyDeleteThe best documented explanation I've come across is a book called "Flash Boys" by Michael Lewis.
http://www.amazon.com/Flash-Boys-Wall-Street-Revolt
In this book, Michael Lewis explains that HFT is nothing more than "front-running" customers' orders.
Read the book.
As a citizen, it's important to know the values of our PAP government that has allowed the introduction of HFT into our Singapore Stock Exchange.
HFT is not so simple as front running. It is a whole complex operation to take advantage of information available to trade against other investors.
ReplyDeleteWe don't know the values of our govt. But we sure know the US govt. It is greed and fraud is ok as long as they can make money. The American financial system is run and operated by crooks at the highest level.
Can MAS audit Tamasek Holding also?
ReplyDeleteIf casinos are OK if it helps for GDP growth, why not HFT in SGX, u tell me lah?
ReplyDeleteRB, hope u can now understand better why PAP do or allow certain things the way they did.
What is the risk to PAP if they allow HFT trading in SGX or casinos?
ReplyDeleteThe Sinkie opposition become ready to be govt and hence the deadly risk of PAP being voted out?
Tiok, can make money, anything goes.
ReplyDeleteWould anyone rig the SGX to rob the daft investors?
ReplyDeleteSinkies shouldn't be too hopeful,
ReplyDeleteotherwise they likely to be disappointed.
What had past COI, Investigation, tweak, apology, promise and whatever measures yielded? At most false hope that gave temporary elations and then heart pains.
patriot
They will check anything within 200m but not inside the room.
ReplyDelete