well! it happens again. TODAY! the sgx system cocks up. when i keyed in to buy, the system didn't show the deal was transacted until half an hour later. prior to that i had keyed to WITHDRAW order.
hence thinking, the order was withdrawn, i submitted a new BUY order. about an hour later, there was 2 orders DONE in my email!
how can SGX multi-million dollars trading system so goofup? financial hub? die lah!! more like a financial fuckup!
anyway, prices recovered and i m making double the profits - a blessing in disguise. but what if it would be contra loss? it would also be double the losses!!
SGX really needs to perk up, shape up or ship out!! it's charging investors "extra" for every buy/sell transaction and the way their system is running, they should be embarrassed !!
the reversal action, that is, keying a SELL order faces the same bloody delayed glitch. imagine this scenario. u key 10 lot ABC shares to sell at $1. it is done but due to the inefficiency of sgx computer system, the transaction isn't shown or confirmed DONE. you key WITHDRAW order because seem that ABC price is going to rise further. again, order isn't CONFIRMED.
you are left wondering whether ur inputs are already processed or not. as it's a very exciting volatile trading period. u presume order WITHDRAW is confirmed. you key in new SELL order at higher price for ABC stock and wait....
email beeps. u get a shock!! there are 2 orders transacted which means instead of selling 10 lots ABC, u ended up selling 20 lots. this is an excess of 10 lots which u possessed. MATI!! price goes up further. u r at a loss. market closes. liao!! 5 days later SGX sends u a fine of $1k for "short-selling".
who's at fault here? i think this could be another way SGX bleeds unwary investors. financial hub? or fuckup hub?
May 13, 2009
Investors hit by short-sale rule
New SGX rules impose hefty fines on those who sell shares they don't own
By Goh Eng Yeow, Senior Correspondent
SOME investors rushing back into the red-hot market have been caught out by new rules on short-selling and heavily fined for selling shares that they did not actually own.
They have been told by the Singapore Exchange (SGX) to pay fines of $1,000 or more within five days of failing to settle their trades.
The penalties were introduced last September to deter 'naked' short-selling during a period of near panic on global bourses.
Such short-selling occurs when a trader sells a stock he does not own or has not borrowed in the hope that the price will fall. This would allow him to pocket the difference.
But the SGX appears to be catching an increasing number of 'innocent' investors who fail to deliver small quantities of shares when a trade is due to be settled three days after it is transacted. The trades are usually 1,000 or 2,000 shares of a blue chip like DBS Bank or SingTel.
When investors fail to come up with the shares at settlement, the SGX has to buy the stock on a specially established buying-in market. It then delivers the shares to the buyer on the seller's behalf - as well as levies a hefty fine.
The number of failed trades has risen sharply in line with the rise in daily market volumes. They have more than doubled in the past month, from 1.4 billion shares to 3.7 billion.
Two weeks ago, the SGX buying-in market attracted trading in about 10 to 15 counters a day. By yesterday, the list of counters traded had grown to 50.
Many of these failed trades have apparently been made by retail investors returning to the market after a long absence. They are selling online shares held in Central Provident Fund (CPF) accounts without specifying that they are CPF trades, or their accounts were not properly linked up to the SGX.
One remisier gave the example of a client fined $1,000 after selling 1,000 OCBC shares online.
sometime when sgp brags about how "excellence" it has arrived, u can be sniggering at such news.
it gives an impression that sgp is good at bullying the "little people" who are ignorant as to approach where to address their plight. it's very situational and circumstantial.
SGX lays the deadly computer glitching traps. many unwary investors just fall into it like my above examples have shown. simple investor thought he has done an honest trading. due to the SGX and far too delay response to a transacted order, a second transaction is executed and thus resulting in a unwary "shorting".
bloody SGX which impose a charges for every transaction now should answer and be responsible for such mis-cue. if anyone who should be fined, it should be SGX. then again, how to complain against them? MAS? and just where is MAS when u needed them to step in and exercise prudent justice??
look at LEHMAN MINIBOMB. the answer is very obvious. singapoe is a big financial fuckup hub!