Time to open up buying-in market

FUNDAMENTAL flaws exist in Mr Vincent Khoo's proposal - as described in his letter "Let remisiers buy-in for clients who short sell by mistake" (BT, Nov 4) - to allow buying-in of shorted securities from the ready market for delivery one day after T+4. The one-day delay will pose settlement uncertainty for market participants and can undermine the orderly clearing system.

I concur with BT's Oct 30 article "Time to rethink the need for buying-in", and urge Singapore Exchange (SGX) to review the current buying-in market structure and consider opening up the buying-in market to facilitate buying of securities by retail investors themselves.

The two-hour opening of the buying-in market from 3pm to 5pm is inadequate, inefficient and has its shortcomings. Any outstanding or incomplete T+3 buying-in cannot be continued on the following morning.