SGX should fix real problems, not miss the woods for the trees

I REFER to the report "Share traders calling it a day as market volume dries up" (BT, Oct 23). I have been in this industry for 20 years as a trading representative and I haven't seen such a lack of interest among the investing public for such a prolonged period.

The Singapore Exchange (SGX) view that "it cannot jeopardise long-term market quality for short-term liquidity droughts" is like missing the woods for the trees. What the Singapore market is severely lacking now is confidence. We urgently need to bring in better quality companies to market to spark investing interest. At the moment, some companies are being listed with only placement shares, without any shares being offered to the public. It begs one to wonder - why list in the first place?

Following the penny stock collapse in October 2013, SGX has moved to tighten regulations, such as requiring brokerages to collect collateral and shortening the settlement period from three days to two days. This is akin to closing the gate after the horse has bolted. What we need now is better surveillance and effective penalties to maintain the integrity of the market.