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redbean



Joined: 07 Mar 2006
Posts: 13862
Location: singapore

PostPosted: Wed Mar 18, 2015 10:28 am    Post subject: Reply with quote

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.
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redbean



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PostPosted: Fri Mar 20, 2015 1:46 pm    Post subject: Reply with quote

Extended Settlement Contracts designated as dormant
‘ In view of the low levels of trading interest in the SGX Extended Settlement (ES) Contracts, SGX has decided to designate these contracts as dormant, with effect from 1 April 2015.’
This is a product that has its lifespan prematurely shortened for lack of interest. Trading on this product has petered to negligible level in its few years of existence since its introduction into the market in Jan 2009.
A peep into the stock market also revealed that hundreds of stocks listed in the SGX were also thinly traded or not traded for weeks or months. Interest in such inactive stocks is so low that it would not be a surprise if they will be delisted voluntarily by the respective companies in due course.
It would not be funny if such inactive stocks will also be designated as dormant stocks one day. A quick count on Friday 20 Mar morning, 11am, showed that at least 350 stocks were not traded at all, inclusive of 28 suspended counters. This is nearly 50 percent of the 805 counters listed. If this is going to be the case and going to be a norm, what does it say of the market and these stocks?
What do you think? Would they join the company of Extended Settlement Contracts as dormant stocks?
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redbean



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PostPosted: Thu Apr 09, 2015 10:05 am    Post subject: Reply with quote

China MUST not go down the path of self destruction

When I read about China offering Shanghai and Hongkong as the alternative international stock exchanges to the world without HFT/computer trading and massive manipulation, I was pleased that China has found a way from the decadent and corrupt exchanges of the western model. The western model of stock exchanges and financial systems are not sustainable, operating under rules and systems that are worst than the casinos, fraudulent, unfair and designed to cheat the innocent masses.

I was shock to read in the local media that China is going to allow the banks to buy over security brokerages and licenced to trade in the exchanges. And they know what this means, the strong will get stronger and the weak gets weaker. The banks, with their financial muscles, will edge out every other player and expedite the early demise of the stock exchange industry. If China cannot see what would happen to their thriving stock markets that are relatively free from HFT and massive speculations by the big funds, they should look at the state of health of the Singapore stock market. It is dying, in a state of denial, and no one knows how to save it but pretending that it is doing fine, very fine.

China must not allow the banks to buy over the brokerages to indulge in unfair trading in the stock market. China must resist this move and not be pressurised to conform to a fraudulent stock market/financial system designed by the West. Their stock markets are healthy and doing well. Do not be deceived by the snake oil sellers and take the slippery path to self destruction. The banks must be kept out of the stock market, to do banking and not speculations and trading equities, writing derivatives and selling derivatives based on equities.

China beware, and know what you are in for. Do not be misled by the snake oil sellers and the blind. Do not fall into a trap and commit the same mistakes as Singapore and unable to unwind without killing the stock market. Sit tight and watch how the western modelled stock exchanges collapse in due course, in the next few years. Do not be conned to join the bandwagon of destruction!

Just look at what is happening at the Hong Kong Exchange and what is happening to the Singapore Exchange over the last few days or months. You want Hong Kong to be in the same deplorable and pathetic state of dying and fading into oblivion?
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redbean



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PostPosted: Thu Apr 16, 2015 10:43 am    Post subject: Reply with quote

Shanghai Singapore Connect – An Impossible Dream
The success of the Shanghai Hong Kong Connect has been making many people here salivating. Why are their markets so active and bullish while the touted as the most progressive and advanced SGX is still in ICU? No doubt the exuberance in Shanghai/Hong Kong exchanges is having a spillover effect on the otherwise dead but artificially boosted computer infested market and giving it a semblance of life. But do not believe much in it as the bulk of the trading is done by computers, not real participation from real investors.
With the surge in prices and volumes in both Shanghai and Hong Kong, some are questioning why the SGX would not do a Singapore Shanghai Connect and bring some life back to the market. It is wishful thinking for many reasons but most important is the philosophy behind Shanghai and Hong Kong exchanges. The Chinese are promoting Shanghai and Hong Kong as the alternative trading model to the excessively manipulated American modeled exchanges that are dominated by computer trading, cheating on the innocent investors and the fund managers.
China would not allow such unfair practices to operate in the Shanghai Hong Kong exchanges. No way. How then could SGX dream of a connect with Shanghai and Hong Kong to form a holy trinity when one is obviously looking ungodly?
Actually SGX should have no fear as it is the best exchange in the region with all the best practices and hi speed computers and the most advanced trading concepts in the system. There is no need to be envious of the Shanghai Hong Kong Connect. Soon Shanghai and Hong Kong would fail and would adopt the same practices like the SGX. That is the only way to go forward. Everything is so fine in the SGX. And with the new reputation as a Mickey Mouse stock exchange inundated with penny and penniless stocks, with tiny bit sizes, smaller lot sizes, the market is idea for all ages. Children can also afford to buy stocks with their pocket money. It is so liquid and so cheap to play in this Mickey Mouse stock market, not much more expensive than playing Monopoly.
And with children participating in the market, as proxies since they cannot trade directly, the de facto number of investors could easily doubled or tripled, to give the added trading volume or if not, the number of investors that can be theoretically playing the market.
The Shanghai Hong Kong stock markets are incompatible to the SGX as the value of their stocks are too expensive, the bit size and the lot size are also too big and expensive for children to play. They are playing in a different league, adults only. And how can they allow a connect to a system that uses computers to trade against the innocent and ignorant investors to take advantage of them with their computer power? No way. Unfair trading is unfair trading.
The Chinese would go their own way, do their own things. The SGX would be happy with its Mickey Mouse status and image and targeting a different clientele, investors that can only afford to play super penny stocks.
A Singapore Shanghai Connect under the present arrangement and operating platforms is simply no go. The only way to operate a sustainable and sophisticated stock market is the SGX way. The Shanghai Hong Kong model will not work, for long if the foreign funds would have their ways, to force them to be more like the SGX or the New York Exchange.
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redbean



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PostPosted: Mon Jun 15, 2015 8:29 am    Post subject: Reply with quote

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.
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redbean



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PostPosted: Wed Jan 20, 2016 8:44 am    Post subject: Reply with quote

Why is SGX’s commission rate so low?
The commission rate for buying and selling shares in the SGX is between 0.3% -0.5%. For high net worth clients, some are charging 0.15% to 0.25%. Heard some super clever brokerages are charging disgraceful commission rates that are as good as free.
We have heard all the silly reasons why commission rates have to be low because we are competing for business in a globalised world and also competing one brokerage against another. Sounds so logical and with good business sense. The lower one cuts the commission rate, the bigger will be the market share and the more profitable will be the business. Let me quote the commission rates of some major stock exchanges that Singaporeans are likely to be interested to know.
1. Hongkong – 0.25%
2. Malaysia – 0.85%
3. Australia, Europe, USA, UK, Japan, Shenzhen, Thailand, Taiwan, Indonesia – all at 1%
Looks like the only country that Singapore is competing for business based on lower commission rate is Hongkong. The rest of the world still charge 1%. Even Malaysia is charging 0.85%.
What is happening? Why like that one? Why are the rest of the world still doing their business as usual at 1% commission rate and did not lose their business to our near to free commission rate? Should not the rest of the world be rushing here to trade in the Singapore stock market or in the Hongkong stock market when the commission rates are the cheapest compared to their 1%?
Shhhhhhh, genius at work. Geniuses think like geniuses. They know things that no one else know. Just give them time. In the long run everything will be ok. The Singapore stock market is doing fine, real fine. Even the brokerages are doing real fine. And there is no need for remisiers or dealers. The stock market is designed that way. So the exodus of remisiers and dealers out of the industry is just normal.
Low commission rate is competitive and is good for business. Why is it that our stock market is now known as a moribund stock market, waiting to close shop, with remisiers and dealers leaving the industry? Maybe Singapore’s commission rate is still too high and can go lower to gain more market share and to bring the stock market to life again. Come to think of it, this must be the reason. The commission rate can go lower and the market will be roaring to life.
Yes, cut commission rate further. That is the way to go. This is the only solution I can think of to revive the business and the dying stock market. More people will start trading in stocks again. We can promote stock trading among the children too with no commission. Make our stock market the cheapest stock market in the world, not because the stocks are cheap but because the commission rate is negligible, is the cheapest in the world. The whole world will be rushing to trade in our stock market. Cheap, cheap, cheap. Lelong. The big Singapore Sale!
All those countries still insisting on 1% commission rate will soon go out of business if they did not cut their commission rate, and all their businesses will land up in this island. The future is so bright.
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redbean



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PostPosted: Mon Feb 01, 2016 8:22 am    Post subject: Reply with quote

SGX – The elephant that no one wants to see

It was not just an elephant that no one sees, but no one wants to see or talk about as if there is a dark force telling them not to say anything about it. SGX held a public dialogue and it was a damn big deal. It never happened before! They never think it was necessary to do so. Mohamed must go to the mountain, don’t expect the mountain to come to Mohamed. So there was a public forum, for what, to hear about the elephant, to talk about the elephant? Anyone going there with any inkling of hope that something meaningful would come out of it must have his mental faculty checked.

The people in charge in the SGX and MAS are not idiots. They are the super talents of the land, the crème ala crème of our establishment. They did not know what is happening, they did not know the elephant was there, they could not see the elephant? Heard of the emperor’s new clothe? Who in his right mind, earning millions happily would dare or want to risk telling the emperor he is naked and get slapped?

So what did SGX try to do in the dialogue? As usual, telling the good stuff and hoping the audience would hear only the good stuff. They said, ‘bo how seow bo kong’ if you know what it means. The stock market is very healthy, really, as good as it could be, we are performing better than many major markets in the whole wide world. Ok, enough of ‘how seow’. And sure enough, the remisiers and everyone in the industry present at the forum could not stomach the ‘how seow’ being thrown at them. They did not want to hear the ‘good stuff’.

Hey, don’t think the remisiers, dealers and sundry are really daft, blindly reading the media and hearing only what people wanted them to hear. They are the practitioners, the people on the ground, losing their pants, their clients losing their life savings, and many are quitting a moribund industry. The stock market is doing well, according to who and on what criteria? No sensible person would say that without looking silly.

Ok, I confess I was not at the session, knowing what it would be like it would be a futile and time wasting effort to be there. The only thing good coming out of it, if you think it is good, is for the letting out of steam and frustration, to tell them to look at the elephant. Luckily the remisiers and dealers did not riot or throw their shoes at the panel. But many would leave the forum more frustrated than ever, knowing that no one that is in a position to do something was there to listen and to want to do something right. They were there to tell everyone that everything was fine, just like when they first decided to bring in the foreign funds and introduced all the changes to make high speed computer trading a bliss, at the expense of the rest of the players, taking advantage of computer power to cheat and fleece the innocents.

Remember what they said? The big funds, the computers plugged into the system, were the way going forward. This was the new thing and must follow market practice. There would be plentiful of liquidity and plentiful of trading activities. The stock market would spin out of control and everyone would be doing roaring businesses. Oops, this last sentence is just my exaggeration. But they did said the future was so bright and business would be so good that tomorrow could only be better. The rest is history.

Yes the stock market is very healthy. In another six months or so, maybe half of the remisiers and dealers would also pack up and leave. The broking houses would be operating on half strength and trying to break even in a losing battle in the best stock market in the world. Now, if the market is so good, why would the Singapore Business Federation rush a paper to appeal to the govt to reinvest in the local stock market that they could not raise fund from the market, a key function of the market, and they had to call the stock market a moribund stock market? Are they lying or someone else is lying?

And if the market is so good, why are the remisiers and dealers fleeing and why are the broking houses starting to make plans to cut staff and downsize? And why were the SGX and MAS deemed it necessary to break protocol, to come to Mohamed, to want to listen to Mohamed? Oops, sorry again, my mistake. They came to tell Mohamed the good news, that everything is fine, just fine.

Ok, let me hold my horses and quote a few comments that Rajan whatsapped to me from SI chat to give you an idea of the farce that happened at the forum and you can make up your own mind on the fruitfulness or futility of the chat session. This is the culture of the establishment. If they cannot convince you, they will confuse you. Remember the clown saying everyday that public housing was affordable? Actually more clowns are still singing the same tune.

Ok, here are the quotes:
1. If the remisiers, dealers are frustrated, what would the tens of thousands of lousy listing sufferers from S cheats to sinking SMEs do?
2. The outpour of anger and frustration among dealers and TRs was ‘encouraging’.
3. SGX began the day saying how Singapore exchange healthcare stocks has outperformed…put out a chart that’s says How our index has out performed SSEC since 2007(the grammar and typo errors are inherent in the posts). This went on for an hour, I can’t believe it, …’until a young man from DBSV interrupted and pointed out that they are cherry picking data points. The healthcare computation index was skewed and that if they had used another time period, the outcome would be different. (KNN)
4. He then went on to talk about how sick is the market. At lunch time yesterday half of the counters on sgx were not traded. The top 100 counters has only certain values etc etc. Things get heated up.
5. Soon remisiers one by one poured out their views on how S cheats, lousy SMEs, business trusts etc etc destroyed wealth savings of their friends, themselves and clients.
6. The outpouring was great.
7. It’s heartening to hear TRs questioning the morality, the extend of greed, the damage done to the investing public, the lives of those who depends on the industry from remisiers to backroom were given a chance to air.
8. Heard the young man talked about…remisiers, ex simex driving taxis and colleagues leaving…he grieved at the sorry state of affairs in the industry after years of mismanagement…How billions of market capitalizations were lost…lives broken….

The above comments are not new, did not happen yesterday. And you can bet that the people in the govt too knew about it. The sad thing is that all their heads were buried in the sand. No one dares to tell the truth, no one wants to tell the truth, no one wants to know the truth. You can bet Hsien Loong, Tharman, Heng Swee Kiat and every minister know what is happening to the stock market. The big question, why the reticence, why the inaction? Why is everyone looking the other way? This is the biggest mystery. This is the pathetic state of things. Who is responsible for this shit?

No one really, no one is responsible though many are taking millions and millions as salaries. ‘No one owes you a living. You die your business.’ Heard of the phrase ‘bo cheng hu’? Did the dialogue achieve anything or meant to achieve anything?

Thank you for bearing with me.
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redbean



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PostPosted: Wed Feb 03, 2016 8:18 am    Post subject: Reply with quote

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.’
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redbean



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PostPosted: Thu Feb 25, 2016 8:34 am    Post subject: Reply with quote

DBS profit up share price down
DBS announcing another unbelieveable achievement for the 4th quarter results. At the rate it is making profit, in no time DBS would be the biggest bank in the world and the most profitable one. 4th quarter profit up 20%, to $1b in 3 mths. Who is saying banks cannot make big profits like the casinos? And revenue hit $10b or $10.79b in a quarter, extrapolate to one year it would be more than $40b! Earning per share also up from $1.32 to $1.57.
With this kind of scintillating performance, the management must be handsomely rewarded by the millions and well deserving. But please put in the claw back clause for safety reasons, just in case like Sembawang and Keppel. But touch wood it would not happen to DBS. DBS can expect to grow and grow and profit to go up and up like the salaries of super talents.
Now the bad news. Share price of DBS bank was down 18% for the year and this was based on yesterday’s price. Today(24 Feb) its price fell by another 26c. What is happening, with such good results and no bad news, the share price of DBS is falling like a rock! How to explain this?
Didn’t the investors and fund managers believe in the good numbers and start to rush in to buy up more DBS shares for keeps? With 30c of dividend, it is as good as getting 30c discount. The fund managers and investors are not saying they don’t believe in the results right? And it cannot be a sell on news because the share price has been falling and not rising before the announcement. What is going on, what is happening?
DBS is not like those western banks that reported billions and billions of profits only to reveal a big black hole during the banking crisis and begged the US govt for handouts or go bust. The MAS has a very tight control and would not allow local banks to have their accounts cooked like those western banks, creating billions of profits when the truth is losing billions instead. MAS has a very high standard of control and governance and the scintillating results of DBS or any local banks are real. Don’t worry, we are in good hands.
One possible reason, the computers are doing all the damages. Computer trading is never about fundamentals. It is pure trading and gambling. The computers are programmed to trade against the investors. When investors rush in to buy, the computers will be computing when to sell and how much to sell to make profit against the investors. This could be the case. The investors and funds are rushing in to buy only to be sold down by the computers and the victims are the investors and fund managers having faith in the good results, and the share price of DBS.
The big winners, the computer traders. And if you look at the volume of trades done, more than 10m shares in half a day, or more than $130m of trades done. This could not be the work of small investors or fund managers trading. It is the sign of computers trading and doing the damage.
DBS, Temasek and GIC and big funds are paying a heavy price to the computer traders that would show them the middle fingers as far as fundamentals are concerned. DBS is doing very well, very good company, top bank in Singapore, Batam and Bintan, oops I mean in the Asia and the world. Why is the price falling like a coconut?
Thank you, computer trading. You are a darling, very good for the market and for long term investors buying on fundamentals.
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redbean



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PostPosted: Thu Mar 03, 2016 8:57 am    Post subject: Reply with quote

Shares in Standard Chartered plunged on Tuesday after the Asia-focused bank revealed a $1.5bn (£1.1bn) loss.
http://www.bbc.com/news/business-35639284
The bank will take a $4bn charge on writing down the value of its loans, driven by falling commodity prices and deterioration of Indian markets.
Shares in the bank tumbled by 4% to a record low of 418.7p.

CEO said: “It rips at our soul every time we look at these numbers and we don’t ever want to have to stand up and tell this story again.”

And that’s not all.
StanChart faces accusations over ‘dirty debt’. It bought a $100 million “dirty debt” from a M’sian bank and used it to demand compensation from the Tanzanian government despite knowing that the loan had been part of an embezzlement scheme, according to claims in a legal row in Tanzania. The debt was originally owed to the M’sian bank by a M’sian company, Mechmar.
Update qt 7.00am: HoHoHo woild endorse this spin Sir John Peace, Standard Chartered’s outgoing chairman, said: “While our 2015 financial results were poor, they are set against a backdrop of continuing geo-political and economic headwinds and volatility across many of our markets as well as the effects of deliberate management actions.”
Don’t blame us. World’s in bad shape. We juz reflecting it.
Cynical Investor

What had happened to Stanchart is nothing new. Remember those American and European banks that were declaring billions of dollars of profits till the eve of the financial crisis? Yes they were reporting how well they were doing and how many billions they were making. Then overnight all declared bankrupt with big holes in their accounts that could not be patched and needed to be saved by the govt?
When big banks are reporting big big profit, be very careful. With the world economy in a limbo, with many companies losing money, how did the banks made all the big big profits, in the billions? Are the banks so clever, like the casinos? Wait for more ‘Stancharts’ to reveal themselves and the big holes they are hiding.
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PostPosted: Fri Apr 01, 2016 8:53 am    Post subject: Reply with quote

Stock Exchanges – Has Singapore become the laughing stock?
We were the best, used to challenge Hongkong and Tokyo to be the Number One exchange in Asia. Today, the only thing we can crow about is being the best managed stock exchange, a lot of very good rules to protect investors from investing and losing their pants, and a very expensive super computer that can match the speed of super computers of High Frequency Traders.
Other than the above, we are now slipping down the ladder. In an article today in the Today paper, it has this headline, ‘Thailand topples Spore as SE Asia’s king of IPOs’. If this is not bad enough, we have even fallen behind Malaysia and Jakarta. We only had 13 IPOs listed in the SGX with only one in the main board and the 12 in the Catalist board. The funds raised in SGX are less than 10% of Thailand, one third of Malaysia’s and half of Indonesia’s.
What is happening? No one wants to list in the best managed stock market in Asia with leading edge super speed computers, computer trading and non stop trading? Oh, the regional bourses are promoting themselves and encouraging their local companies to list at home. Great reasoning, we should also do that. The only principle that business people swear in is to make money. If the local bourses are shitty, would their companies list in them to get shit?
If SGX is where they can make money, that alone will be the reason for companies to flock here. No need any funny promotion. What is happening to the SGX? Retail investors fleeing the market, companies refusing to list and there is a new beginning when companies are starting to delist from the exchange. And the broking houses are as quiet as the cemetery and remisiers and dealers are calling it a day with increasing numbers. Nothing to worry about, it is the new norm.
Is there anything wrong with the stock market? Why is the stock market called a moribund market? Why is the best stock market in Asia, or wanting to be the best stock market in Asia, falling into such a deplorable state? No, it is a wrong perception. The market is in the pink of health. Everything is fine. They are encouraging the remisiers to go for more training to be the best remisiers to service the clients, and maybe help the clients to make more money. There are even specialists in the business, not just ordinary remisiers.
Not to worry, everything is fine, just fine. The SGX is the best stock market in Asia. It would be nice if there is a Times Ranking system like how they ranked the universities and SGX would definitely rank at the top.
How to run down a stock market to ground zero? Impossible! We have the money to buy the best talents from the whole world to manage the stock market. We are paying very good money. We will overcome and be the best we can be. The best is yet to come. The stock market is in good hands.
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redbean



Joined: 07 Mar 2006
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PostPosted: Wed Apr 20, 2016 9:23 am    Post subject: Reply with quote

Do we have high frequency traders in SGX?

/// Eric Hunsader, founder of Nanex, has been at the vanguard of warning about the dangers and the rampant fraud that the rise of high-frequency trading (HFT) algorithims have let loose in today's financial markets. .....

Of the situation that led to his award, he says:

"The folks at the NYSE were selling their direct feed for north of $30,000 a month versus the SIP which is under a thousand dollars a month. Their customers are not buying it because it has that much more rich data. The thing that makes it worth $29,000 more is that it is faster, but that is illegal. Up until this point they deny that that is the case. And somehow it works. So the exchanges make all their money from their highest paying customers which are the high frequency traders. And the high frequency traders pay the exchanges exorbitant amounts of money to have a slight advantage.

That's how the whole system works. It is absolutely, positively rigged. There is no question about it. It is rigged on many different levels in many different ways -- for example, no retail order ever gets to see the light of day of the stock exchange. That's one of the many eye openers. People who aren’t pros in the market don’t realize that it's all a rigged game. "

Hunsader also had opportunity at one point to access the audit trail data from the CME futures exchange, data that the central authorities almost never allow outside eyes to see. What he found was clear evidence that a very small number of very large players push prices and volume around at will to vacuum up profits at the expense of everyone else:

SOURCE:
http://www.zerohedge.com/news/2016-04-19/eric-hunsader-financial-system-absolutely-positively-rigged

This is a very important piece of information and deserves to be an article on its own so that more people can read about it.
Why would HFT traders want to pay another $29,000 pm just to be faster? The return must be much more than the $29k pm. But this is not the only advantage, by being faster. They are not telling the whole truth and the fraud and cheating involved. Why did they said it is rigged? Who are the victims of the rig?
Who allowed this fraud to be practiced in the exchanges?
What we have is a bunch of crooks that knew what is happening but chose not to know. And we have a bunch of people kpkb about everything but the real issue, did not know what is going on. And the end result, the traders taken to the laundry and the exchanges turning into a casino that would run to a standstill in a matter of time.
This is irresponsibility at the highest level.
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redbean



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PostPosted: Tue Oct 25, 2016 8:40 am    Post subject: Reply with quote

SGX, where got elephant in the room?
Goh Eng Yeow wrote a piece titled ‘SGX, where have all the investors gone?’ in the ST on 24 Oct. This is a surprising question to ask today as if it just happened. Remember all the good news when Bockers came on board, that with all the foreign big players, including the algo traders, liquidity would be all time high and broking houses could expect to do great business. He even invested $250m on a new high speed super computer for SGX to prepare for the big volume of trading transactions that it was supposed to handle. There were great promises of a highly strung stock exchange and smiling faces every where.
What is happening today, broking houses trying to break even, remisiers quitting the business, unable to chalk up even commission to pay for overheads, and the dearth of investors? And the best part, no one knows what is wrong with the stock market. Everyone in a state of denial. Everything is fine, just fine, nothing to worry about. This is the new normal.
What is happening, what is happening? Now who is asking what is happening, everything is fine, really, tomorrow will be better. We have seen worst, went through many crises, not to worry, SGX shall overcome.
This is what Goh Eng Yeow concluded in his piece, ‘No doubt it is now also facing big challenges in finding new ways to draw back the investing crowd. But I have no doubt that it will persevere and succeed. That must be the fervent hope of remisiers sitting out the trading drought.’ I would like to type HOPE in big capital letters. Not to worry, after the darkest night, the sun will surely rise.
Did anyone see the elephant in the room? No, the market is weak because of external factors, the world economy is slowing, China is slowing down, and what else? Still in a state of denial, refusing to see the elephant? This time the crisis is for real. No amount of monkeying around will do any good until the elephant is removed.
How about having more courses, diplomas, degrees, master degrees and Ph Ds for stock brokings? When we have so well trained and qualified remisiers to help investors to trade, definitely the market will boom. Let’s train more Ph D remisiers. It will sure help, if not improving the liquidity, at least the remisiers can print Ph Ds in their name cards and call themselves investment specialists. Never mind if they are still earning less than $2000 a month.
Any suckers want to acquire a Ph D or Masters degree in stockbroking? Plenty of courses available, to earn $2,000 pm or less.
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redbean



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PostPosted: Wed Mar 01, 2017 8:16 am    Post subject: Reply with quote

How long does it take to admit a silly mistake?

A few people came to me shaking their heads just to ask why it took 6 long years and wasting so many precious hours of unproductive time to realise that the no lunch break is a total failure from the start? The promise and optimism of some half baked logic that longer hours with no lunch break meant more business, would increase trading business by 10%, were at best be good for a laugh. Only someone not in the industry could think that such an idea would work when anyone with a couple of years in this business and with a little grey matter would know how silly it was. And it took a whole solid 6 years to admit that it was all an expensive mistake, an unproductive farce.

Then I also heard some clowns still saying that it was a great idea and it did not fail, it was a great success. The no lunch break farce gave SGX a big advantage over other bourses that have to close for lunch. The clown even bragged that if one bought one share in Timbuktu and the market crashed, the buyer of that one share could sell it in SGX without missing a bid while other bourses were closed for lunch.

I must say that I agree with the clown's clever reasoning. We could boast to the world that we have a market that opens a whole full day, so efficient and so convenient for all the traders of the whole wide world to trade here. I would also agree that if the market is open 24 hours, better still, then our aunties and uncles and ah mahs could trade in all the markets all over the world any time they like. They can even wake up in the middle of the night after having a good tip from their dreams to buy shares, and the Singapore market will be there waiting for them.

Come to think of it, the failure of the no lunch break would not have happened if they open the market 24 hours a day non stop. (Oops, I know some disagreed that it was a failure and would still swear that it was a great success.) And business would boom and everyone in the business will be laughing to the bank and no one would be complaining of no business or a waste of time. It must be, 8 hours of business, now 3X8 hours would mean business would triple. As they said, want to do something well, go all the way, no half hearted measures like no lunch break.

Many are cheering that they are having their lunch break back. Please forgive these people for they did not know what they missed and how good it would be, how good it could be, if the market remains open 24 hours a day. The only reason for these folks to be happy for a miserable lunch break, I think, is that they are not talented so unable to appreciate how good no lunch break is for the business. A child in the kindergarten would also be able to work out the arithmetic. The idea is so simplistic! But that is the brilliant part and even simpletons would know that it would work. How can anyone say it would not work or it did not work?

Maybe we need to engage a foreign talent to teach these simple folks how good it is if a market has no lunch break, or better still operates on a non stop 24 hours basis. Give it more time to succeed, keep the no lunch break. 6 years is too short a time for this great idea to bear fruits. Please don’t throw out such a clever idea.

Stupidity has no cure.

A consolation is that the market still has many great innovations that would keep it flourishing and in the pink of health. I particularly like algo trading, computer trading, smaller bid size, can trade one share at a time to improve liquidity and cheaper for children to play with their piggy bank savings. $1 can buy 100 shares. Now isn’t that nice? And main board shares some more. More than 2 billion shares are traded daily, and will be bigger tomorrow. Don't pray pray. See how healthy is the stock market or not? It is growing from strength to strength.

It is such a pity that they are bringing back the lunch break. Now business will surely be adversely affected.
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redbean



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PostPosted: Fri Jul 27, 2018 8:23 am    Post subject: Reply with quote

Silver lining for Singapore Stock Exchange
The light of the dying stock market is getting dimmer as days go by with better quality stocks finding it meaningless to remain in the exchange and getting themselves delisted. On the other hand, good companies/stocks would find listing in other stock markets more effective to serve their needs. The SGX is now one of the smaller exchanges in Asia, even smaller than neighbouring exchanges of Asean countries.
Broking houses are finding it hard to hold on to their remisiers and remisiers are leaving the industry almost daily. The strength of remisiers is almost half of what it used to be during its heyday. And there is no light at the end of the dark tunnel. There is pessimism and resignation in the air.
But all is not lost. In moments of despair a silver lining has appeared that may give some hope to those still clinging to a dying industry. The SGX is trying its best to revive the market with all kinds of things, looking clueless as to the real causes of its impending demise. The latest is to link up with other exchanges where the better companies chose to list to share a bit of their good fortune. However, this effort is not looking too promising as good exchanges would not want to waste time tying up with unpromising exchanges. Anyway, if good exchanges are not willing to tie up, any exchange will do as long as they are called stock exchange. Never mind the quality and substance as long as there is some form resembling a stock exchange.
The best hope to get more listings in the SGX lies in the super SMEs, like super penny stocks. This comes in the form of hawker stalls, foodcourts and restaurants where there is now a new buzz with the stalls gaining better image and business from Michelin. Many stalls and restaurants are now awarded the world famous Michelin star or stars as recognition of the quality of their products. With the Michelin star/stars decorating the stalls and restaurants, they would make good potential candidates for listing in the stock exchange. And with so many of them gaining more stars, maybe the SGX could set up a board, a third mini board, just for hawker stalls and restaurants with Michelin stars. There should be a few hundred such establishments out there eager to be listed in the stock exchange and to go international.
There is a glimmer of hope that the stock exchange would not die so fast with this new blood of Michelin stars. Say a big thank you to Michelin stars and hawker stalls. The future of the stock exchange can shining like the Michelin stars.
Outram Park Char Kway Teow can start the ball rolling. IPO managers, quick, hunt them down.
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