The episode on Asiasons, Blumont and LionGold stocks has focused the spotlight on contra trading. The authorities has said that it does not recommend retail investors to engage in contra trading due to the risks that may be involved and it seems to me that the authorities also want retail investors to understand fully their financial status before investing their monies. Watching “Business Singapore” yesterday (17 Oct 13) night, I saw how a remisier advocate defends contra trading. I was actually surprised to hear that contra trading is practised in Singapore and Malaysia only as investors explore the 3 days of settlement before payment for their stock is to be paid to see whether they could sell the stocks they have bought for a profit before the stocks are even credited into their Central Depository Account.
To me, I feel that if we are not to allow contra trading in ......
