Question: Singapore brokers, a sunset industry?

A recent question from a Reuters correspondent posed to me: "Whether Singapore brokers are a sunset industry?". Some extract from my reply:

"The business has definitely declined over the years for SGX market... "

"From my perspective, the issue is mainly the problem with the govt / regulators which started many years ago..."

"...new brokerages... Some of them don't even offer trading in SGX, just US markets, like E*Trade, OptionsXpress and ThinkorSwim..."

"While the brokerage industry business is declining overall, it is not really a sunset yet as evidenced by the new... brokerages. The appetite is still there, but not everyone is able to understand, position themselves and have the ability to do so effectively."

Additional comments:

I did a business & spreadsheet analysis for a potential business deal to buyout a local brokerage a few years back, I have also worked in a pioneering role for an established foreign brokerage setting up operations locally and a business exploration role for an European based brokerage. In short, surviving and prospering in the current industry as a broker is not easy.

Temasek Agrees to Buy Stake in High-Speed Trader Virtu

Temasek Agrees to Buy Stake in High-Speed Trader Virtu

Temasek Holdings Pte will pay about $180 million for a minority stake in Virtu Financial Inc., the U.S. high-speed trading firm that postponed an initial public offering, according to a person familiar with the transaction.

Shanghai-Hong Kong Stock Exchange Link Will Start in a Week

Shanghai-Hong Kong Stock Exchange Link Will Start in a Week

Bourses in the two cities will begin trading through the program, which allows a net 23.5 billion yuan ($3.8 billion) a day in cross-border purchases, on Nov. 17, regulators said in a joint statement today after weeks of investor speculation on the start date.

Stock connect delay spooks Chinese markets

Stock connect delay spooks Chinese markets

Hong Kong Exchanges & Clearing (HKEx) said on Sunday that there remains no firm timetable for launching the so-called "through train", which directly links the two stock exchanges and is an major step in China's efforts to open up its capital market.

HKEx said it has not received the relevant approval for the launch of Stock Connect and noted that further announcements would be made as and when there were material developments on the timeline of launch.

Updated Exchanges, Prop Trading

Updated Exchanges, Prop Trading. SMX was bought over by ICE.

Kuranda Trading website is down, and the Twitter account was last updated in April. Anyone with news, do update us at tradersing@gmail.com

A Chat with a Value Investing Legend: Professor Bruce Greenwald

A Chat with a Value Investing Legend: Professor Bruce Greenwald

The Columbia Business School was where value investing started – Benjamin Graham, the intellectual father of the discipline, first lectured on the topic there in the late 1920s. Warren Buffett is perhaps the most famous student from Graham’s lectures.

Today, the Columbia Business School is still very much in the thick of value investing, with its involvement being led by Professor Bruce Greenwald. A well-known authority on value investing, Greenwald is hailed by The New York Times as a “guru to Wall Street’s gurus.” He is also the author of multiple books, including Value Investing: From Graham to Buffett and Beyond.

Blogger Note: While there are no statistics on the outcome of activist shareholder activities in Singapore and Asia, there are companies that display value characteristics with activist shareholder activities in Singapore.

SGX Founding Futures - Documentary

SGX Founding Futures - Documentary

The story of Singapore’s rise as a global financial centre began with a remarkable vision more than 30 years ago. The pioneers who had this vision foresaw a vibrant and globally connected marketplace, rooted right in the heart of Asia.

Asia ex-Japan funds outperform year-to-date… Asian Sovereign Wealth & Pension funds looking increasingly at alternatives…

Asia ex-Japan funds outperform year-to-date… Asian Sovereign Wealth & Pension funds looking increasingly at alternatives…

Asia ex-Japan hedge funds lead global peers with year-to-date returns of 6.66 per cent. In Asia Pacific, sovereign wealth funds (SWFs) and pension funds have been diversifying their investments into new markets and asset classes.

With China Set to Open Stock Trading, Investors Lay Groundwork

With China Set to Open Stock Trading, Investors Lay Groundwork

Bankers, brokerage firms and hedge funds have all been quietly expanding their Asian operations to take advantage of one event: the biggest opening into China in years.

China plans to connect the Shanghai stock exchange to its counterpart in Hong Kong over the next month as part of an initiative announced by Premier Li Keqiang this year to open China’s markets to foreign investors who have been largely shut out.

New SGX trading rules: What you need to know

New SGX trading rules: What you need to know

The sweeping regulations proposed by the Monetary Authority of Singapore and the Singapore Exchange (SGX) do not lack for ambition in their scope.

As well as aiming to make investing in blue chips more active and affordable, they are geared towards curbing excessive speculation and market manipulation, improving the quality of listings, boosting transparency, and levelling the playing field for small investors.

SGX to cut board lot size from Jan 19 next year

SGX to cut board lot size from Jan 19 next year

MARK this date - Jan 19, 2015. That's when retail investors will be able to start buying securities listed on the Singapore Exchange (SGX) in smaller lots of 100 units from 1,000 units currently.

Asia’s Best-Performing Macro Hedge Fund Hits $1 Billion Mark

Asia’s Best-Performing Macro Hedge Fund Hits $1 Billion Mark

Quantedge, which started with $3 million in October 2006, has increased its assets under management to $1.05 billion at the end of June, the fund’s Singapore-based management company Quantedge Capital Pte said yesterday in an e-mailed response to queries by Bloomberg News.

Asian hedge fund capital hits record as performance gains outstrip slower inflows

Asian hedge fund capital hits record as performance gains outstrip slower inflows

Total capital invested in Asian hedge funds rose to a record in the second quarter as gains based on the funds’ performance more than made up for a sharp slowdown in the entry of fresh capital, according to industry analysis firm Hedge Fund Research (HFR).

Total assets managed by Singapore-based fund managers grew by 11.8 per cent to USD945 billion last year, (2013)

Total assets managed by Singapore-based fund managers grew by 11.8 per cent to USD945 billion last year, (2013)

The Monetary Authority of Singapore (MAS), the joint central banking and financial regulatory authority, has reported that the total assets managed by Singapore-based fund managers grew by 11.8 per cent to USD945 billion last year, (2013).

Updated Prop Trading

Updated Prop Trading. Added Neo & Partners Global, Grasshopper.

MAS, SGX to go ahead with proposed stock market reforms, sets minimum trading price

MAS, SGX to go ahead with proposed stock market reforms, sets minimum trading price

Companies listed on the Singapore Exchange (SGX) will have to ensure their shares are worth at least 20 cents each, as authorities go ahead with proposed reforms aimed at curbing excessive speculation in the stock market.

Retail investors to get access to wider range of stocks

Retail investors to get access to wider range of stocks

Starting in January next year, Singapore Exchange (SGX) will reduce the board lot size for listed stocks from the current 1,000 shares to 100.

Singapore opens Asia’s first ‘trading atrium’

Singapore opens Asia’s first ‘trading atrium’

A new Singapore-based company set up by a former trading technology executive has launched what it calls the first “trading atrium” in Asia offering multi-asset trading to proprietary firms and hedge funds.

Worst Of Hedge Funds In Q1: Asia And Emerging Markets

Worst Of Hedge Funds In Q1: Asia And Emerging Markets

The period was not particularly charming for the industry, but was particularly gruesome for Asia and emerging markets. Equity markets in these regions went through big falls, making long/short equity managers suffer, while macro managers did relatively better.

Updated Brokers

Updated Brokers. Added Maybank Kim Eng Securities: CFD, Futures. Added UOB Kay Hian: CFD.

China to allow cross-border trading

China to allow cross-border trading

China will allow cross-border stock investments between Shanghai and Hong Kong in a small step towards the opening of the PRC’s capital account and letting Chinese individuals buy foreign equities overseas.

SGX's push for more market liquidity

SGX's push for more market liquidity

SGX is providing new incentives to boost liquidity on the exchange -- market participants will be engaged through the "SGX Market Maker and Liquidity Provider Programme", taking effect from June 1.

Incentives will come in the form of reduced clearing fees, subject to a combination of factors, such as how liquid a stock is -- the less liquid a stock, the more discounted the clearing fees will be.

Sony Nearing Movie Deal on Michael Lewis’ ‘Flash Boys’

Sony Nearing Movie Deal on Michael Lewis’ ‘Flash Boys’

Sony Pictures is nearing a movie rights deal on Michael Lewis’ real-life financial drama “Flash Boys: A Wall Street Revolt” with Scott Rudin and Eli Bush producing.

“Flash Boys,” published March 31 by W.W. Norton, focuses on high-frequency trading in the financial markets and possible market manipulation.

Virtu Said to Delay IPO Amid Furor Spurred by Michael Lewis Book

Virtu Said to Delay IPO Amid Furor Spurred by Michael Lewis Book

Virtu Financial Inc., the high-frequency trader that announced plans last month to sell shares, will start marketing the offering weeks later than bankers anticipated, two people with knowledge of the matter said.

Updated Prop Trading

Updated Prop Trading. Added Jump Trading.

SGX to allow more stock market order types from March 31

SGX to allow more stock market order types from March 31

Singapore Exchange is offering more order types from March 31, giving greater flexibility to investors trading on the local bourse.

Asia hedge funds add $20 bln in first growth in 3 yrs

Asia hedge funds add $20 bln in first growth in 3 yrs

Asia-focused hedge funds added $20 billion in assets in 2013, recording their first growth in three years and boosting the industry's size to $158.8 billion, according to a survey from tracker AsiaHedge.

Trading firm Virtu Financial plans to raise up to $100 million in IPO

Trading firm Virtu Financial plans to raise up to $100 million in IPO

Trading firm Virtu Financial Inc, which posted only one day of trading losses over the five years ended 2013, plans to raise up to $100 million in an initial public offering, the company said in a regulatory filing on Monday.

Hedge funds recover from early 2014 losses… survey scrutinizes hedge fund manager credibility…

Hedge funds recover from early 2014 losses… survey scrutinizes hedge fund manager credibility…

Hedge funds were up 1.83 per cent in February 2014, according to Eurekahedge, recovering from their losses in the start of the year as the MSCI World Index posted gains of 3.87 per cent during the month.

Asian banks venture back to prop trading

Asian banks venture back to prop trading

As US and European regulators put the final touches on new proprietary-trading rules for banks, some Asian firms are building out desks that make bets with their own money.

Asian fund managers start the year with low net exposure

Asian fund managers start the year with low net exposure

Asian hedge fund specialists GFIA said Asian fund managers ended January with low net exposures, with selective net short exposures in countries such as Thailand, Indonesia and Malaysia.

New Asian hedge fund assets drop by a fifth to $3.85 bln

New Asian hedge fund assets drop by a fifth to $3.85 bln

Hedge funds launched in Asia in 2013 raised a fifth less than a year before as more managers launched funds with smaller sizes, according to a survey.

Singapore Exchange to reduce stock clearing fees

Singapore Exchange to reduce stock clearing fees

Singapore Exchange (SGX) will revise its fee structure and provide various incentives in a bid to boost trading volumes and encourage brokers to provide more attractive buy and sell quotes.

Hedge funds start 2014 in negative territory… Asian hedge fund launches up 20 per cent…

Hedge funds start 2014 in negative territory… Asian hedge fund launches up 20 per cent…

According to Preqin’s Hedge Fund Analyst, hedge funds made a loss of 0.17 per cent in January 2014, the benchmark’s first month in negative territory since August 2013.

More than 50 new hedge funds have gotten their start in Asia this year, as managers vie for some of the billions in investor capital that is flowing into the space.

Updated Singapore Financial News

Updated Singapore Financial News. Added Singapore Business Review.

Updated Prop Trading

Updated Prop Trading. Added Genk Capital.

Where Were the Best-Performing Hedge Funds in 2013?

Where Were the Best-Performing Hedge Funds in 2013?

Asian hedge funds outperformed their global peers last year and investors took notice, chalking up the highest inflows to the region since 2007, research has shown.