1st Aug 2014 - Singapore to launch market reforms, sets minimum trading price

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#1
http://www.theedgesingapore.com/the-dail...price.html

FThe Monetary Authority of Singapore (MAS) and Singapore Exchange (SGX) today issued their response to the joint consultation paper on the Review of the Securities Market Structure and Practices, which was published on 7 February 2014.

MAS and SGX have taken into account the feedback received and decided to proceed with all five proposals as follows:

(i) Minimum trading price. To introduce a minimum trading price of $0.20 as a continuing listing requirement for issuers listed on the SGX Mainboard. This is to address risks of low-priced securities being more susceptible to excessive speculation and potential market manipulation. A transition period of 12 months will be given to affected issuers to undertake corporate actions to meet the new requirement. This proposal will, over time, improve the quality of issuers listed on the SGX Mainboard.

(ii) Collateral requirement for securities trading. To require securities intermediaries to collect minimum 5% of collateral from their customers for trading of listed securities to promote financial prudence. This will help mitigate the risk of excessive leverage assumed by investors. It will also reduce reliance on remisiers to manage the credit risk exposures of customers. Institutional investors, trades settled through delivery-versus-payment mode, and funds from the Central Provident Fund and Supplementary Retirement Schemes will be exempted from the collateral requirement.

(iii) Short position reporting requirements. To implement aggregate short position reporting to further enhance transparency of short selling activities in the securities market. The value threshold has been adjusted upwards such that only short positions that exceed the lower of 0.05% or S$1 million of issued shares will have to be reported. Aggregated information will be released on a weekly basis.

(iv) Transparency of trading restrictions imposed by securities intermediaries. The Securities Association of Singapore (SAS) will take the lead to develop industry guidelines. This is to address the concerns of information asymmetry with regard to the dissemination of information on trading restrictions imposed by their members. The industry guidelines will provide guidance on publication of the trading restrictions and their rationale, and to promote consistent practice among SAS members given the differing practices currently.

(v) Reinforcing the SGX listings and enforcement framework. SGX will establish three independent committees, namely Listings Advisory Committee, Listings Disciplinary Committee and Listings Appeals Committee. They will introduce a wider range of sanctions for breaches of listing rules. These will further strengthen SGX’s listings process, improve transparency of its disciplinary process and enhance its ability to enforce the listing rules.

To improve retail investors’ access to a broader range of listed securities, particularly blue-chip stocks, SGX will also reduce the board lot size for securities listed on SGX from the existing 1,000 shares to 100 shares in January 2015. SGX will announce details of this initiative by end August 2014.
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR! 
4) In BULL, SELL-SELL-SELL! 
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#2
Market reforms are good. The ablility of Singapore to attract quality listings to SGX is more important for the long term attractiveness of the investible market.

Unfortunately, IMHO the continued listings of high risks businesses such as commodity and energy related companies will not help enhance the depth of SGX but further erode the precious hard earned savings of the innocent retail investors.

So far, such companies are making debut here due to their inability to convince savvy investors in the usual home markets such as ASX...

GG
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#3
"So far, such companies are making debut here due to their inability to convince savvy investors in the usual home markets such as ASX..." -GG

Yes, agreed! Big Grin also says that mid-liquidity in sg market and hunger for yield investors are willing to take higher risks!
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR! 
4) In BULL, SELL-SELL-SELL! 
Reply
#4
anyone tio burnt by the penny rout last oct?
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#5
(03-08-2014, 10:17 AM)pianist Wrote: anyone tio burnt by the penny rout last oct?

Didn't see any post by anyone of burns, Tongue
Chialc88 did mentioned that he made some nice profits if i am not wrong?!!

Big Grin
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR! 
4) In BULL, SELL-SELL-SELL! 
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#6
Normally people got burnt will just keep quiet. They don't want let pp think taht they are stupid.
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#7
(03-08-2014, 10:51 PM)Fish Head Wrote: Normally people got burnt will just keep quiet. They don't want let pp think taht they are stupid.
Do you really think people got burned by penny stock? Buying stock at the wrong time mean you are sure to lose. Even at minimum, BB will still be in it to play. It will not help unless you limit the $$ which can be used to buy the share or the limit counter price. The correct action should be focus poor-quality counters or dubious companies which include S-chip. SGX and MAS should drilled into their financial figure and banks to see if any irregularities in it.
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#8
On one hand minimum price sounds good, on the other hand lot size decreased means they want more participation by making it more affordable. Sgx is almost becoming the third casino :-)

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#9
SGX does not have a moral responsibility to eliminate speculation. Speculators are an important market participant, like it or not. SGX is to keep an orderly, cheap and transparent market for all kinds of market participants, be it speculators or "investors".
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#10
I think a lot of the operational details still need to be ironed out.

What are the potential implications for companies and investors ?

The MTP (Minimum Trading Price) of 20.0 cents is an interesting one.

If the share price is below but close to 20.0 cents ( say around 17, 18, 19 cents) - what would be the best options for companies to comply with the new MTP requirement - "boost share price" or "consolidation of shares" ?
________________________________________________________________________________________________________________

RESPONSE TO FEEDBACK RECEIVED –
MAS-SGX JOINT CONSULTATION ON THE
REVIEW OF SECURITIES MARKET STRUCTURE AND PRACTICES


http://www.mas.gov.sg/~/media/MAS/News%2...ctices.pdf
Research, research and research - Please do your own due diligence (DYODD) before you invest - Any reliance on my analysis is SOLELY at your own risk.
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