- Joined
- Jul 31, 2011
- Messages
- 4,480
- Points
- 113
SGX can't be both regulator and player
REQUIRING a remisier to get a copy of the Central Depository (CDP) statement to confirm ownership of shares before he can allow a client to sell any of the three counters "designated" by the Singapore Exchange - Blumont Group, LionGold Corp and Asiasons Capital - does not serve any purpose.
As I understand it, just as purchases cannot be "recorded" for a few days, the "ownership" of the stock stays on CDP records for a few days after they are sold.
Hence, there is nothing to stop a person from "double selling" a designated stock.
The "flaws" in the contra system are due to problems created by the Singapore Exchange (SGX), and not the system itself ("Time to fix flaws in local contra trading system"; Monday).
The problems include inconsistency in the implementation of the SGX's trading rules and delays in making queries to companies experiencing unusual trading activities, followed up by perfunctory queries and, worse, accepting standard replies.
But the flaws are not surprising. The SGX is, after all, a listed firm looking after its commercial interests and competing for investors' funds in the stock market.
As long as the SGX performs the twin roles of regulator and market player, anything it does to ensure a well-regulated market may be regarded by many people as a farce.
Danny Chow
REQUIRING a remisier to get a copy of the Central Depository (CDP) statement to confirm ownership of shares before he can allow a client to sell any of the three counters "designated" by the Singapore Exchange - Blumont Group, LionGold Corp and Asiasons Capital - does not serve any purpose.
As I understand it, just as purchases cannot be "recorded" for a few days, the "ownership" of the stock stays on CDP records for a few days after they are sold.
Hence, there is nothing to stop a person from "double selling" a designated stock.
The "flaws" in the contra system are due to problems created by the Singapore Exchange (SGX), and not the system itself ("Time to fix flaws in local contra trading system"; Monday).
The problems include inconsistency in the implementation of the SGX's trading rules and delays in making queries to companies experiencing unusual trading activities, followed up by perfunctory queries and, worse, accepting standard replies.
But the flaws are not surprising. The SGX is, after all, a listed firm looking after its commercial interests and competing for investors' funds in the stock market.
As long as the SGX performs the twin roles of regulator and market player, anything it does to ensure a well-regulated market may be regarded by many people as a farce.
Danny Chow
