SGX, do elaborate on rationale for continuous trading

Recently, Chew Su Tat of the Singapore Exchange (SGX) commented in the local media on the issue of continuous all-day trading (CAT) in our local bourse.

Comments

Guanyu said…
SGX, do elaborate on rationale for continuous trading

04 March 2015

Recently, Chew Su Tat of the Singapore Exchange (SGX) commented in the local media on the issue of continuous all-day trading (CAT) in our local bourse.

While I acknowledge that CAT was implemented in August 2011 at the request of various stakeholders, the common perception then was that it was done to assist algorithmic and high-frequency traders.

Now that we are told that it was implemented “to protect retail investors from sharp market movements”, perhaps the SGX could enlighten us on how our retail investors have benefited from this “protection”.

Readers would note that retail investors in Hong Kong, Indonesia, Japan, Malaysia and Thailand do not seem to enjoy similar “protection” and yet seem to be coping well. These stock markets break for lunch for periods ranging from one hour in Hong Kong to two hours in Malaysia, with no problems arising from “sharp market movements”.

We therefore wonder why investors in Singapore need this special protection. We hope Mr Chew can elaborate.

Natarajan A

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