SGX's new 'Trade with Caution' notices are no laughing matter

WHEN the Singapore Exchange (SGX) started issuing its "Trade with Caution" (TWC) notices a couple of years ago, the move was greeted with derision, cynicism, and a fair bit of laughter. Comments went something along these lines: "It's a waste of time - SGX queries the company on reasons why its shares are in play, the company says it doesn't know why, then a TWC is issued. No big deal."

Well, now it is a big deal. Over time, TWC has evolved from being a generic caution to the market that appeared to lack bite (and so was not taken seriously) into a targeted, specific warning with detailed trading data that suggests laws may have been broken and hints of more regulatory action to come.

Judging by the impact it has had, it is having its desired signalling effect. Clearly, this is now serious business.