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Full-day trading - good or bad? Huh

Business Times - 19 Jan 2011

Remisiers to get full plate of work in lieu of lunch


(SINGAPORE) Remisiers will be soon be trading lunch-time for crunch-time.

Yesterday, the Singapore Exchange (SGX) announced that it would start all-day continuous trading from March 1, in a move that will mark the end of the market's cherished 90-minute lunch break.

While Magnus Bocker - SGX's chief executive officer - made the announcement yesterday after a cheery but pointed airing of Dolly Parton's 9 to 5 in the SGX auditorium, remisiers will not be singing along anytime soon.

Albert Fong, the president of The Society of Remisiers (Singapore), called the move 'mercenary' yesterday. 'We are definitely disappointed. Imagine you are working 9 to 5 and you don't have lunch. How would you feel?' Mr Fong told BT yesterday.

If the move receives regulatory approval, the 12.30-2pm lunch slot will vanish and the market will trade from 9am to 5pm.

The prospect of the market being open to trade even as remisiers dart outside for a bite brings with it practical concerns, as well.

'Assuming a client has an open position and I'm not around and can't do anything - I would feel very irresponsible,' said Mr Fong.

Some remisiers, however, will not be as affected as others. The ones at the top of the food-chain might continue enjoying the spoils of lunch, as they have as many as two assistants, BT understands.

The move to scrap the lunch break was set in motion about half a year ago, as the SGX sought to boost trading volumes by keeping the market open for business during the 90-minute window.

'This will make Singapore one of the most accessible markets in Asia and in the world,' said Mr Bocker yesterday.

He also told the media and analysts that according to 'general wisdom', the boost to trading volumes could range from 6 to 12 per cent.

Mr Fong reckoned, however, that the increase in volumes would be marginal. He also noted that it is a particular class of market participant that will leap at trading throughout every single second of the workday.

'This is more to satisfy the traders than the genuine investors. Investors don't need to hedge,' said Mr Fong.

As more bourses around the world eliminated their lunch breaks, SGX's move towards all-day trading appeared inevitable.

Currently, heavyweights like the New York Stock Exchange, Nasdaq and the London Stock Exchange do not have lunch breaks. Closer to home, the Korea Exchange, India's National Stock Exchange and ASX have also done away with them.

Remisiers such as Phillip Securities' Henry Tjoa have taken this move stoically, resigning themselves to being at the beck-and-call of the market even as food beckons.

'Each remisier might have to pair up with another one. Still have to eat, right?' said Mr Tjoa.

He also noted that Hong Kong and Japan plan to extend their markets' trading hours as they compete with Singapore for a share of the trading action.

'We are a smaller market, so it looks like we have no choice,' he said.

Resistance appears to be futile, even to The Society of Remisiers' Mr Fong.

'What choice do we have in the light of global competition? Notwithstanding the move will adversely affect the ways we conduct our business, we will move forward,' he said.

David Gerald, the president and CEO of the Securities Investors' Association of Singapore, welcomed the advent of all-day trading.

'Retail investors here will not have to sit and wait until lunch is over to manage their portfolio or risk, especially if they have invested in foreign-based products or shares,' he said.

'The needs of retail investors are evolving and we are of the view that allowing investors more opportunities to actively manage their investments is a step in the right direction.'

Presently, some people like to enter bogus trades with ridiculous buy or sell prices during the lunch break. This practice frustrates office workers who can only check share prices during their lunch breaks, as it mask out the real bid and offer prices. Hopefully come March 1, we can check share prices during lunch time and do some trades.
They shold seriously consider revising the minimum lot size down from 1000 shares too....
And while we are at it, please eliminate contra as well! Tongue
Base on some casual observation by myself........sometimes there is also 1 lot bid up at end of trading day.........Sometimes on shares that cost around $0.10-0.40

Seems like a deliberate push up to me.............

Anyways, is shares of SGX and Kim Eng rising?

6-12% is a lot money to them.........lolx
Kim Eng will not move due to corporate action.

If by eliminating contra leads to lower financing cost for brokerages and the benefit is pass to investors via lower commissions, then I am all for it.

Revising the minimum lot size down also means people can use one share to bid up/down end of trading day price. Actually with so many penny stock listed in sgx, it may not be cost effective for investors to have the min lost size removed. Nonetheless, I am for removing it due to the resulting flexibility to implement pair trading strategy.
World fastest trading engine but must trade at 1000 share per lot
take 3 days to settle a trade
only stores 5 years of financial statements
the broker cannot verify whether the seller has enough share in his CDP account to settle the trade.
the watchlist for stock is limited to 10.
a search engine that is as good as useless

SGX Reach – world’s fastest trading engine – to launch on 15 August

19 January 2011 – Singapore Exchange (SGX) today said it is launching SGX Reach, the world’s
fastest trading engine, on 15 August 2011.
With its ultra-low latency and significantly higher throughput, Reach will enhance Singapore’s
position as the best venue for companies to connect with investors keen to participate in Asia’s
dynamic economies.
The combination of Reach and SGX’s upcoming co-location and hub offerings will increase
market liquidity and velocity, thereby better supporting the needs of listed companies and
investors. Reach’s new features will give investors more ways to have their orders executed. Its
enlarged capacity will also offer opportunities for more brokers to join the securities market.
Mr Magnus Bocker, CEO of SGX said, “Reach will provide our customers with leading-edge
services delivered on a high-speed platform and driven by world-class technology. The availability
of our diversified products suite on Reach will help Singapore leap ahead of other global financial
markets as a centre for international fund-raising and investment.”
SGX is currently working with its members and technology partners to prepare for the rollout of
Reach. In addition to its benchmarked order response time of 90 microseconds “door-to-door”,
Reach can handle 1 million order book changes per second per partition, 100 times the capacity
of the existing engine.