The current fear of high speed trading in the stock market is a repeat of the May 6 crash of 2010 that wiped out US$1 trillion in 30 minutes in New York. And there is genuine fear that there will be many repeats of the flash crash simply because high speed trading is primarily a machine based system. It is garbage in and garbage out. Human error or programme error will just trip the system and go quickly out of control.
The false sense of relief is that these were accidental errors, not by design or intention. Then there are also deliberate errors by rogue traders or funds trying to take advantage of the system. And there are the hackers who would want a share of the fun and the money by entering the system either for monetary benefits or to cause turmoil and a collapse of the system.
These are big issues that can ruin the stock market and cause big losses to investors and rightfully should warrant more serious attention. There are other worries that the administrators and regulators conveniently try to ignore, the interests of the genuine investors, the men in main street, who are investing their savings, the pension funds etc. Their interests need to be protected as well, not just the big funds and high frequency traders(HFT).
The supporters of high speed trading, the system developers, the big funds, HFTs and the regulators, have all been singing the same chorus so far. High speed trading has many benefits, or the benefits outweigh the cons. High speed trading increases liquidity, reduces trading cost, high volatility and high efficiency which are good. Bids can be very small and stocks becoming very liquid, which will facilitate entry and exit from the market.
Not much was really said of the cons and the ills of high speed trading. Not that there were none. They were either not spoken or swept under the carpet, just like all the derivatives and toxic notes and bonds. Everyone benefitting from high speed trading is crying ‘Hallelujah!’ It is a flawless system, it is godsend, something made in heaven for the stock market industry. It is unavoidable, like the tide coming in. Really? Is the spread of drugs unavoidable and states should give in to the drug lords?
Can it really be that wonderful, all goodness and no evil? All the goodness is actually a myth. The small teeny weeny bids, the high speed, high volatility, and lower cost, and high efficiency, only benefits the HFTs. The small investors, the men in main streets, are all losers for they cannot take advantage of any of these great stuffs. High speed trading is their Waterloo. All the great stuffs are actually working against them.
They have higher trading costs versus the funds and HFTs who trade practically at no cost, except for minimal clearing fees, and could make profits from one or two bids against the average traders that need 5 or 10 bids just to get even. The smaller bids are actually designed in this way to favour the funds and HFTs, yes, and against the small investors. They would not say so. Just do the arithmetic of a small trade and the disadvantage is glaring.
The act of allowing high speed computers to plug into the stock market system is itself a violation of stock market regulations. For it allows the HFTs to have access to real time information of buy and sell, and for their algos to work and decide what, when and how much to buy/sell with a clear win advantage. How can that be allowed? They could arbitrage with such information, not much different from insider trading, they could be front running, all because of electronic access to the system which other small traders did not have. And those are only the things that the public knows. Could they be in a privileged position to take advantage of what they know to do more harm to the innocent investors? Could they be cornering a stock, or even the whole stock market if it is small enough relative to their trading limits, or operating in concert with a few big boys?
The stock market regulators have a duty to provide a level playing field for all. It is a key condition embedded in their constitution and rules and regulations. And they are violating this very fundamental rule, giving the HFTs an unfair and absolute advantage over small investors.
Who is to regulate the regulators to stop them from breaking their own rules and regulations? It is fairly acceptable for big funds to hire the best talents and use the best computers and algos to analyse their positions and trading. But they must not be allowed to plug into the stockmarket system to take advantage of their superior technology that is not available to the small investors. Let them play with their own high speed and sophisticated hardware and software, in the privacy of their own establishments, but NOT plugged into the stock market system.
Allowing this to happen is nothing but FOUL. It is a grave violation of stock market practices and rules and regulations, against fair play, inequitable, and even criminal.
High speed trading, high speed traders and algos are not angels playing with their golden harps. They are more like devils and demons with their wicked contraptions cheating the innocents. The small investors have been suffering huge losses, hundreds of times more than the Lehman crisis. Does anyone even bother to ask or to want to protect the small investors? Would anyone be pricked by their conscience to try to protect the small guys? No, it is a stupid thing to do. Be on the winning side. Look after the big business and big boys and make sure they can make more money from the losers.
There are agencies existing with the primary objective of protecting small investors? Are they doing anything about it? The brokerages and remisiers too have a responsibility to protect the small investors, to ensure that the playing is level and fair to all parties. The small investors are their customers. With no customers there would not be any business to do anyway.
The failure of the American and European regulators to provide a fair playing field, to allow corporate greed to cannibalise from the average workers, is the main reason for Occupy Wall Street Movement. The Movement will continue to spread until irresponsible greed and corporate corruption are arrested, and good governance be restored in the right places. Moral righteousness has gone to sleep.
11/18/2011
11/17/2011
The fakes look better
This statement is often made by owners of fake branded goods. The real McCoys often have little glitches that came with hand crafted goods. And the fakes look so good and cheap, machine made, printed from a computer, like fake degrees.
Buying fakes and hiring fakes are two different things altogether. I was reading a post in 3in1kopitiam where one guy was relating his experience of a friend hiring a FT with fake qualifications. The friend ended up in financial woes as the insurance company refused to honour its obligation because the FT professional was a fake.
Just wondering how many fakes are there in the market. And they look real damn good than the real stuff, the Sinkies from NUS, NTU and SMU. The Sinkies somehow don’t look too impressive or suave as the fakes, and cost more as they are genuine stuff.
Buying fakes and hiring fakes are two different things altogether. I was reading a post in 3in1kopitiam where one guy was relating his experience of a friend hiring a FT with fake qualifications. The friend ended up in financial woes as the insurance company refused to honour its obligation because the FT professional was a fake.
Just wondering how many fakes are there in the market. And they look real damn good than the real stuff, the Sinkies from NUS, NTU and SMU. The Sinkies somehow don’t look too impressive or suave as the fakes, and cost more as they are genuine stuff.
White woman speaks in forked tongue
‘…Washington is “very strongly against any nation using coercion or intimidation instead of using the law to try to resolve these issues.’
This is what Hilary Clinton said on board the USS Fitzgerald in Manila after announcing that it will fight along the side of the Philippines on its territorial dispute with China. For the believers, the US is such a peace loving country that never uses coercion or intimidation against other countries. It only uses force or war. Coercion and intimidation are child play. This is the western truth.
And why is she in a US warship saying such words. And why are the Americans moving it personnel and military hardware to Australia and Asia, possibly the Philippines? She is visiting Thailand and as a gesture of helping with the big flood, she is sending a warship to Thailand as well, for peace.
Asia is going to re experience another era of gunboat diplomacy from the West. Was it diplomacy or gunboat aggression? To me it is naked aggression by the aid of the gun. When the West colonized the world, Africa, Asia and America, it was never about diplomacy but conquest. But that was the only language that silly Asian and African countries could understand. And today you can see them reminiscing about those great colonial days with their white masters. It was great romance of a golden era of masters, subjects and slaves.
There is no need to regret the loss of those happy days. The West is about to reconquer Asia and they are bringing all their big guns back to Asia. And the Asians, especially India, Vietnam and the Philippines, countries that have lived a long and glorious relationship with their colonial masters, are cherishing every moment of it. Let’s welcome the great white gods back to rule over Asia.
But first they must prepare for war and bloodshed, and more destruction. They said destruction is the mother of creation, of a new world under a new colonial master. That would be nice, and a small price to pay.
Asean too has forgotten about how well they lived under the concept of Zopfan. They are aligning themselves with the great powers to fight for a better tomorrow.
This is what Hilary Clinton said on board the USS Fitzgerald in Manila after announcing that it will fight along the side of the Philippines on its territorial dispute with China. For the believers, the US is such a peace loving country that never uses coercion or intimidation against other countries. It only uses force or war. Coercion and intimidation are child play. This is the western truth.
And why is she in a US warship saying such words. And why are the Americans moving it personnel and military hardware to Australia and Asia, possibly the Philippines? She is visiting Thailand and as a gesture of helping with the big flood, she is sending a warship to Thailand as well, for peace.
Asia is going to re experience another era of gunboat diplomacy from the West. Was it diplomacy or gunboat aggression? To me it is naked aggression by the aid of the gun. When the West colonized the world, Africa, Asia and America, it was never about diplomacy but conquest. But that was the only language that silly Asian and African countries could understand. And today you can see them reminiscing about those great colonial days with their white masters. It was great romance of a golden era of masters, subjects and slaves.
There is no need to regret the loss of those happy days. The West is about to reconquer Asia and they are bringing all their big guns back to Asia. And the Asians, especially India, Vietnam and the Philippines, countries that have lived a long and glorious relationship with their colonial masters, are cherishing every moment of it. Let’s welcome the great white gods back to rule over Asia.
But first they must prepare for war and bloodshed, and more destruction. They said destruction is the mother of creation, of a new world under a new colonial master. That would be nice, and a small price to pay.
Asean too has forgotten about how well they lived under the concept of Zopfan. They are aligning themselves with the great powers to fight for a better tomorrow.
Is it all about managing the internet?
There were several articles in the media on the impact of internet on institutions and govt, including those in China. How relevant or important is internet and its impact on society is still controversial and developing. Some believe that it has in some way impacted the views of people. Some may see it just as a venting of frustration and after the letting off of some steam, things will return to normal.
For those thinking in such a way, internet is positive and good as a temporary panacea, like panadol, for instant but temporary pain relief. And what govt and corporate leaders need to do is to manage the internet, harness its power, spin the right story and all will be well. Never mind if the real cause of the disease is not treated.
Today the media is printing all the glowing reports about first timers and second timers getting their HDB flats and they are so happy with their new flats. In other words the housing problem is solved and people are happy with the new policies and the policy makers. Hopefully this is real and the problem will go away with this spin.
Has anything been done to tackle the real cause and source of the housing problem? What about those who were booted out of the public housing scheme over the last decade because of the brilliant policies introduced? Have their problems gone away as well? Or would there be an amnesty of sort to redress the sins of the previous policies for its victims?
The internet, unfortunately, will not let a problem go away. Unlike the main media, after letting the aggrieved parties vent their frustrations, after a cooling off period, and not reporting about the problems anymore, hopefully people will forget and think that the problem is no more. See, no more complaints, no problem liao.
The internet has this nasty habit of revisiting, repeating and harping on an issue or problem, for days, months, or years. The problem will not be allowed to die through intentional neglect or silence. The key issue is not just about managing the internet or spinning more positive stories, but about solving the problem at its source. People who think that they can get away with major problems by allowing people to air them and spin some good stories around the problem to will it away will be very disappointed with the internet.
For those thinking in such a way, internet is positive and good as a temporary panacea, like panadol, for instant but temporary pain relief. And what govt and corporate leaders need to do is to manage the internet, harness its power, spin the right story and all will be well. Never mind if the real cause of the disease is not treated.
Today the media is printing all the glowing reports about first timers and second timers getting their HDB flats and they are so happy with their new flats. In other words the housing problem is solved and people are happy with the new policies and the policy makers. Hopefully this is real and the problem will go away with this spin.
Has anything been done to tackle the real cause and source of the housing problem? What about those who were booted out of the public housing scheme over the last decade because of the brilliant policies introduced? Have their problems gone away as well? Or would there be an amnesty of sort to redress the sins of the previous policies for its victims?
The internet, unfortunately, will not let a problem go away. Unlike the main media, after letting the aggrieved parties vent their frustrations, after a cooling off period, and not reporting about the problems anymore, hopefully people will forget and think that the problem is no more. See, no more complaints, no problem liao.
The internet has this nasty habit of revisiting, repeating and harping on an issue or problem, for days, months, or years. The problem will not be allowed to die through intentional neglect or silence. The key issue is not just about managing the internet or spinning more positive stories, but about solving the problem at its source. People who think that they can get away with major problems by allowing people to air them and spin some good stories around the problem to will it away will be very disappointed with the internet.
11/16/2011
POSB and Singapost remarry
DBS deal to bring banking back to Singapore post offices
Tuesday, November 15th, 2011
Singapore Post has formed a major partnership with the largest bank in south-east Asia, which will see basic banking services offered at all Singapore post offices from January.
The alliance with DBS Bank is the first ever tie-up between SingPost and a bank, and will see the bank’s retail outreach within the city-state expanding from 80 branches to 140….
If I can remember, POSB was part of Singpost which was then known as Singapore Post Office. And the Post Office Savings Bank was then providing some banking services to the people, for the convenience of the people before it was divorced and subsequently become the mistress of DBS. Now Singpost is getting engaged with POSB one more time to serve the customers better.
Will the $2 banking charges be discontinued with this second marriage?
Tuesday, November 15th, 2011
Singapore Post has formed a major partnership with the largest bank in south-east Asia, which will see basic banking services offered at all Singapore post offices from January.
The alliance with DBS Bank is the first ever tie-up between SingPost and a bank, and will see the bank’s retail outreach within the city-state expanding from 80 branches to 140….
If I can remember, POSB was part of Singpost which was then known as Singapore Post Office. And the Post Office Savings Bank was then providing some banking services to the people, for the convenience of the people before it was divorced and subsequently become the mistress of DBS. Now Singpost is getting engaged with POSB one more time to serve the customers better.
Will the $2 banking charges be discontinued with this second marriage?
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