SGX promises more dialogue with remisiers

This was the title of an article by a Wong Wei Han in ST on 30 Jan 16.  After reading the content of the article I was wondering whether I should cry or laugh at the silliness of the dialogue. Just the title itself makes me sick. The once in 50 years dialogue would lead to more dialogues. Is more dialogue the solution to the remisiers’ problem? Yes it is the remisiers’ problem. The moribund stock market is the remisiers’ problem. It is definitely not the MAS or SGX’s problem for one good reason. They did not see any problem with the stock market. The stock market is doing very well.

Can you imagine what happened at the dialogue? There were ducks and chickens quacking and cackling but there was no meeting of minds. The frustrated remisiers were there not just for a dialogue per se. They were there not just to complain or vent their frustrations. They were there telling the MAS and SGX that something must be done quickly to save the dying market and industry.

But what happened? The MAS and SGX must be thinking these remisiers must be desperate. There is nothing wrong with the market and nothing needs to be done. And if there is any problem it is the remisiers’ problem, no business, low income and cannot make a living. What has that got to do with the MAS and SGX? Ok, MAS and SGX will be compassionate enough to lend a listening ear. They will have more dialogues if that is what the remisiers want. Ok, happy now?

And the article did narrow done to one big problem that was causing the remisiers the pain and the loss of income, the highly unpopular Minimum Trading Price (MTP). Wow, they finally discovered that this was the problem. ‘The MTP requirement is forcing many companies to consolidate their shares, which has wiped out hundreds of millions in shareholder value and further pressured the already bearish market.’ I am not going to ask who allowed the prices of main board stocks to be split into super penny worthless shares. The good news, this is the problem and if this problem is solved the market will recover and all the remisiers will be happy again as their business will be back. I am very sure this is not the elephant that I was talking about. Anyone sees the elephant yet?

And not all remisiers are so daft. ‘Other remisiers agreed that while the discussion was not in depth and no concrete solutions emerged, the dialogue itself was a welcome gesture.’ So, what are they expecting the MAS and SGX to do when they cannot see anything wrong with the market? Or what would the remisiers want the MAS and SGX to do? What is the elephant?

‘In a statement to The Straits Times, SGX’s rep said: “We are aware there are many long held misconceptions about our market, and we wanted to assure the remisiers that their views and suggestions are heard, and have been, or are being addressed.”’ I see, it is all a matter of misconceptions, nothing serious. Just explain the misconceptions away and all will be fine. Have more dialogues.

If you see a doctor and the doctor did not see anything wrong with you or think that you are not sick, only a misconception, there is no need for any remedies what?  This is what comes out of the dialogue. The ducks said no problem. The chicken said got, then what is the problem? MTP?

More than 100 remisiers and several top MAS and SGX officials spent 3 hours in a dialogue and what came out of it? Has anything been achieved, anything concrete waiting to be done?  One positive result is that there will be more dialogues to explain away any misconceptions…’He (Mr Loh) promised that he will pay attention to our (remisiers) problems and to have more frequent dialogues with us. It’s premature to say whether our (remisiers) issues will be resolved. There is nothing wrong with the market. It is the remisiers and the remisiers’ problems ok?

Luckily no one says ‘No one owes you a living.’