Conditions in Singapore's equities market have worsened despite many SGX initiatives

AFTER reading the letter "Achieving a robust and vibrant securities market" by Ong Chong Tee of the Monetary Authority of Singapore (BT, June 26), trading representatives (TRs) cannot help but feel that it will be business as usual in the equities market here even with a new CEO at the Singapore Exchange (SGX).

Mr Ong asked whether "Singapore as an international financial centre can afford not to have continuous all-day trading (CAT) as major markets including the US, the UK, Australia and Europe" have CAT. Hong Kong is a major market without CAT. There are also markets with CAT that would not be considered major markets.

CAT facilitates high frequency trading (HFT). When TRs ask for the return of the lunch break, they are not talking about food and networking; they seek a more level playing field for the man in the street. HFT is disruptive, can be destructive and does not contribute to a healthy capital market. It takes no view of company fundamentals and is predatory. Its activities can alter the landscape of individual stocks and real businesses, and hence the market. It can seriously affect portfolio management.