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Regulators should spend time as TRs?
Received a response to my last blog posting about market regulation and investigations into insider trading/manipulation.
It came from a dealer who found it a) hard to believe that it takes years to investigate, and b) suggested that regulators should spend some time as trading reps (TRs) so they can gain firsthand knowledge of how the syndicates and manipulators operate.
I'm not sure whether SGX's analysts and surveillance staff are drawn from TR ranks but if they aren't, then it's a useful suggestion. All we have is anectodal evidence of how the "operators'' behind stocks work, and it would surely be useful for an investigator to have hands-on experience of the ways and means in which prices are ramped.
As for the lengthy period for investigations, it is what it is. I wish it was shorter - it's now been more than a year since the infamous Blumont, Asiasons and LionGold crash and all the market knows is that several high-level company executives are being investigated for breaches of the SFA - but there may be staffing, operational, legal and other constraints that I'm not aware of which contribute to making such investigations a long-drawn affair.