I'VE been a trading representative for the past 20 years and the silence in the dealing rooms of late is deafening. It is now quieter than the library! When was the last time the Singapore Exchange management visited our dealing rooms? The epitome of capitalism is the stock market. This prolonged quietness in the market does not reflect well on our status as a premier financial centre in the region. To be fair, SGX has embarked on several moves to rebuild vibrancy in our markets such as the takeover of the Australian exchange, extended settlement contracts, American Depository Receipts, exchange traded funds, removal of lunch breaks, and reduction of bid spreads.

However, many of these measures have failed without much accountability. I'm afraid that some new measures that the SGX is planning to implement - such as the introduction of smaller board lot sizes and collaterised trading - might similarly fail. The proposed measures might in fact make trading more cumbersome and further diminish the liquidity in our markets.

SGX recently had a series of roadshows to engage retail brokers. It mentioned in the presentations that it had introduced a market maker and liquidity provider programme to help boost liquidity. Many brokers present strongly opposed this programme for fear that it would lead to exaggerated prices. The sheer size of the market makers would leave retail investors at a huge disadvantage. SGX has introduced buy-in penalties for accidental short-sales, with possible waivers on appeal. Why introduce such archaic measures when short-sales are not prevalent but create fear among market participants for honest mistakes. Also, in the event of mistakes, market participants are now subject to the buy-in process (with high charges levied) when in the earlier years, the mistakes can be rectified on the next trading day.