In the Strait Times yesterday, I read a strange article. The Singapore Exchange intends to scrap the lunch hour! Currently, trading is halted for a 90 minute lunch break. If the Singapore Exchange has their way, this lunch break will be a thing of the past.
Traders and trading houses have come out against the idea and as a former trader myself, I can understand why. If you take away the lunch break, then when are traders supposed to eat? It’s a change no one is asking for.
The reason given by the Singapore Exchange for the proposed scrapping of the lunch break is to improve the trading volume on the Exchange. You know what it sounds like to me? Desperation!
It’s not a big secret that trading on the Singapore Exchange isn’t what it used to be. Despite all the talk of big block trades and recovery of Asian stock markets, trading volume had been stubbornly stagnant. Its sound like the Singapore Exchange has decided that desperate time call for desperate actions.
3 comments:
HKSE trades 4 hours and yet their daily turnover is much more higher than ours. With internet trading, cross border trading is a lot easier. I don't see the need for such long trading hours.
As it is, volume is already generally lower in the 30 mins before AND after lulnch. As a retail trader, I don't spend more than 2 or 3 hours at the computer. I also find it irritating that whenever any authority wants to change anything, they quote examples to support their case. BUT really, what is the percentage of markets which do not have lunch hours?
Almost everyone seems to agree that this is a bad idea, but as this is the Singapore Exchange; who knows?
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