SGX – Smart computers and super computers

Computers are smart. If not we would not be paying millions or hundreds of millions for them. We don’t expect computers to make mistakes, only human make mistakes. When computers made mistakes, it is either that they are programmed with mistakes or input with mistakes, GIGO.

The latest fiasco by SGX, sending investors CDP statements with errors in the number of stocks they have or did not have, is a grave error. 1% of 460,000 investors means 4,600 would have received error statements. And the nature of such errors is like banks sending monthly statements to their clients showing their deposits, more or less, could be a very harrowing experience. Some may die of shock if seeing their millions disappeared, or died from disbelief when a few millions appeared in their statements.

A mistake like this in the banking industry is a cardinal sin. It is also no small matter in the stock broking business. The stocks are money in another form and people can also die from shock when the differences are huge and unbelievable. And if it is a number game, the plus must come from somewhere, and the losses must go to some where, it is a vicious circle to unentangle. Where would the disappeared stocks go to or the increase come from, from whose accounts to whose accounts?

How could it happen? The errors must be due to some input, deliberate or otherwise, through a modification in some programmes or data entry. Given the fact that so many people are affected, it is likely to be a programme or system error, and a new one. Or it could be the deliberate act of someone or some maleware in the system. A human error due to negligence is likely to affect very few people. When more than 4 thousand people are affected, it is no small matter, not likely to be due to negligence or carelessness of an operator.

Hope SGX is on top of this problem and could rectify it fast.