SGX must get out of its bizarre state of denial

THE apology and explicit acceptance of responsibility from Singapore Exchange (SGX) chief executive Magnus Bocker for Wednesday's computer system breakdown was the first indication in many months that SGX is willing to concede that things are not at all right with many aspects of its business. Mr Bocker's statements that the exchange "takes full responsibility", that the breakdown "should not have happened" and that its priority now is "rebuilding trust" are in stark and welcome contrast to the bland apology issued for "the inconvenience caused"' when the system went belly-up for three hours on Nov 5.

Up till now as SGX came under fire from many quarters for the dismal state the local equities market has found itself in this year, it appeared to even the most objective observers that the exchange operated in a bizarre state of denial - it declared the market to be of sound quality when it has been widely described by investors, brokers and the media to be in bad shape. Those who sensed a loss of confidence among the retail investing public attributed part of the blam…