Building confidence through strong regulatory action

Published Thu, Apr 28, 2016 · 09:50 PM
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LAST week, BT reported that Singapore's central bank and its white-collar crime buster had raided the offices of a few local brokers, most probably as part of an investigation into possible breaches of the law. It isn't known what these breaches might be - the speculation being market manipulation and rigging - yet the response to the raids by the Monetary Authority of Singapore (MAS) and the Commercial Affairs Department (CAD) has been odd, to say the least.

Some trading representatives and their clients were critical, with sceptical remarks to the effect that the raid was "a waste of time", "too little too late" or that regulatory energies would be better spent bringing to justice the parties behind the S-chip collapse and other scandal-tainted stocks.

Another response was that this was the last thing that the Singapore Exchange needed, what with market confidence already so low and trading business depressed. Investors, it was claimed, would be exasperated at the news of the raids and would wonder why Singapore's reputation for being corruption-free didn't extend to the stock market.

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