SGX corrects misconceptions

[CityFarmer]

SGX's side of story on the recent developments in the 3 securities...

SGX corrects misconceptions

Singapore Exchange (SGX) would like to correct certain misconceptions which have appeared in the media recently.
...

http://infopub.sgx.com/FileOpen/20131025...eID=261295

[chialc88]

I read with interest of SGX handling of these three stocks.

As time go-by, it's clear that SGX suspense and designate these three stocks because of their sharp increase in price.

The more I read, the more I make such conclusion.

SGX suspensed and designated these three stocks because of their sharp price increase.

+++++++++++++++++++

The more carefully SGX clarifies/words it's position, the clearer I see the situation.

Initially, I thought there might be some additional reason that prompted SGX to takes such hash actions.

However, after the latest SGX announcement clarifying on contra, SGX power, investigation/Investigation for misconduct...

I am pretty sure that there is no other reason SGX curbs these stocks... aka SGX curbs them simply because their prices go up to high.

I could be wrong.

Time will tell!

[greengiraffe]

Everyone loves a winner. However, not everyone will be interested in the hardwork, blood and sweat that goes on behind the winner.

Drawing a parallel to investments, it is always safer to bet on the tortoise than the hare. However, when one is betting on the tortoise, there will constantly be question over its ability to eventually win the race even though the tortoise is the strongest amongst his peers.

Green Giraffe

[chialc88]

tortoise might win sometime and hare might win sometime too...

I always bet on tortoise ...

but, I always has a tikam fun/fund to bet on hare ...

for a simple reason... no prize in guessing right... $$$

SGX action and future action on these three suspected and designated stocks will be interesting to watch... and now the judge is on the spotlight... instead of the three stocks... right?

Soul searching needed....


A Life not Reflected is a Life not Worth Living.

[corydorus]

My thought is SGX is doing something regardless. Is much better than the s-chips issue from previous mgmt where i feel they are off-hand and leave investor fend for themselves mainly. So to be frank, i am rather please with the direction SGX is moving. Ethical is everything.

[specuvestor]

I think the direction SGX took is correct but the execution sucks. They should have designated the security first instead of suspending. It send 2 very different signal. Designation will warn the contra player and traders but suspension caused the panic.

Suspension will not help retailers. Think the sudden delisting of the 5 counters few years back. I fail to see how it helps retailers.

[CityFarmer]

I think the direction SGX took is correct but the execution sucks. They should have designated the security first instead of suspending. It send 2 very different signal. Designation will warn the contra player and traders but suspension caused the panic.

Suspension will not help retailers. Think the sudden delisting of the 5 counters few years back. I fail to see how it helps retailers.

I agree designation should be issued, around the time the queries raised. The suspension in this case is to cool market down, after the price dived, which is also a right move IMO.

[chialc88]

City,
Funny things is... at our currently commercial interest driver world... right or wrong depends on one who benefits or suffered from SGX actions...

Someone describe the way this incident was handled as "amateur "... not for no reason.

A straight forward person like me can deduce easily that releasing news over weekend with rules that's subject to interpretation...

At the best case, create arbitration opportunities for those who is ready with cash and right mindset...

At its worst case, created a wrong impression of our regulators/regulations.

Any way, the ball is at the court of regulator... lets see what's being investigated ( Volume/Price movement? fraud by traders or fraud in general?)

As the day pass, review from MAS will be intensify... expectations will get higher and higher... lets see what MAS has to say...

To some, the saga had ended, but to me, the game had just began....

I look forward eagerly because I think these actions had started a chain reaction which everyone (world) are waiting patiently.. for the drama to un-fold.



A Life not Reflected is a Life not Worth Living.

[CityFarmer]

City,
Funny things is... at our currently commercial interest driver world... right or wrong depends on one who benefits or suffered from SGX actions...

Someone describe the way this incident was handled as "amateur "... not for no reason.

A straight forward person like me can deduce easily that releasing news over weekend with rules that's subject to interpretation...

At the best case, create arbitration opportunities for those who is ready with cash and right mindset...

At its worst case, created a wrong impression of our regulators/regulations.

Any way, the ball is at the court of regulator... lets see what's being investigated ( Volume/Price movement? fraud by traders or fraud in general?)

As the day pass, review from MAS will be intensify... expectations will get higher and higher... lets see what MAS has to say...

To some, the saga had ended, but to me, the game had just began....

I look forward eagerly because I think these actions had started a chain reaction which everyone (world) are waiting patiently.. for the drama to un-fold.



A Life not Reflected is a Life not Worth Living.

A right or wrong shouldn't base on who gains/losses, including retail investors and/or SGX.

I will judge right/wrong base on "proper" regulation with the tools and rules available. In this case, suspension and designation are the tools of SGX, as a regulator. Suspension was used at the right time, but designation was used too late to suppress speculation, IMO

[specuvestor]

Signalling is a very important aspect of the market mechanism. That's why we have profit warnings etc. Greenspan and indeed the Chinese govt understood this very well.

Suspension gave the wrong signalling. I totally disagree that the timing is right. Designation would have done the job in a much more orderly manner. It is amateur. They regulate the market like a bunch of academics. In order to tame the market you have to understand the market.