4. Due Consultation With Various Market Participants
a. Proper platform for the various market participants to bring-up issues.
Form Working Committee/Independent Committee comprising members of the Broking Community, Investing Public, MAS, SGX & Academics. Have quarterly meetings documented & proper follow-up. All pertinent policies to be implemented should be approved by this Committee.
b. Issues brought-up in the Press or other means should be responded to.
5. More Effective Surveillance And Appropriate Policy Measures
a. Separation of the roles of Market Operator & Regulator. In Audit Standards parlance, not only must the Regulator be independent but must be SEEN to be independent.
To function effectively the Accelerator pedal (SGX) & the Brake pedal (MAS) should be distinct and not one pedal doing both functions.
b. Investigations to be concluded within a reasonable period of time. Blumont, Lion Gold & Asiasons investigations going on for 16 months with no updates so far.
c. Broking House Trade Restrictions to be made under Corporate Announcement in the SGX website instead of the Securities Association of Singapore website.
d. "Trade With Caution" of not much use. When queries are made by SGX on unusual price movements with cookie-cutter responses by companies that they are not aware of any circumstance warranting-it, further investigations must be carried-out if they suspect something amiss. Prior to takeover offers, some prices move-up sharply & thorough investigation must be carried-out to see whether there was insider trading.
6. Developing Our Fixed-Income Market
a. Corporate Bond Offerings to be reduced to sizes of S$ 1,000 each. Regular public education carried out by SGX about investing in Bonds, just like for equities.
7. Investing CPF Funds To Provide Adequate Retirement Funding
a. CPF Investment limits to be re-instated back to 80%. Criteria for CPF Trustee Stock should be stringent to include a profit track record of at least 3 years & dividend yields of at least 3%.
More companies will aspire to be CPF Trustee Stocks.
8. Re-instatement of Lunch Breaks
a. Continuous all-day trading has not worked. Looks like it is meant for Computerised Trading Systems. The Broking Community as well as the Clients are not in favour.
10% of daily trading volumes occur from 12.00 p.m. to 1.30 p.m. If Lunch-break reinstated, this 10% volume will most likely dissipate to the other trading hours.
First Session - 9.00 a.m. to 12.00 p.m. & Second Session - 1.00 p.m. to 4.30 p.m.
Half-hour before Hong Kong Opens & Half-hour after Hong Kong Closes.
9. Role of Trading Representatives
a. What is the role of Trading Representatives ? Are they mere order takers?
b. Moving-up the Value Chain like managing investors' money (say up to S$200,000) with adequate safe guards. Just like Contractors who went on to become Property Developers.
Commissions plus fee-based income.
c. Commission sharing of 40% (Trading Representative) & 60% (Broking House) not fair to TRs. Should be at least 50%. TRs not only bear 100% Credit risk but also 100% Execution Risk.
Earlier days Bye-Laws stated as such & the practice has been carried-out till today.
