SINGAPORE RULE CHANGES SEEN HAVING LITTLE IMPACT
Revisions to the by-laws of the
Stock Exchange of Singapore to be introduced on April 1 will
have little impact on the market, brokers and analysts said.
    One analyst did say, however, that the removal of fixed
commissions on transactions in government securities and Asian
currency bonds would increase trading volume, because most
deals before were transacted directly between clients.
    One change will allow stockbroking firms to advertise, but
brokers said this would not have much effect because most
corporate clients already know the market well.
    Many remisiers (brokers' agents) and dealers criticised the
exchange for not taking the opportunity to abolish or cut
transfer fees on remisiers moving to other firms.
    One remisier said the transfer fees inhibit an efficient
broking system because they restrict brokers' movements.
    But most remisiers welcomed the amendment to replace cash
deposits with bank guarantees for business transactions. Where
an extra deposit is needed, it can in future be either in cash
or in securities approved by the exchange.
    Other remisiers felt the new rule that they must report all
transactions involving 50,000 dlrs or more to the exchange was
unnecessary.
    Another revision says broking firms are not allowed to
improve a buying and selling quote by more than one bid during
the last five minutes of trading.
 REUTER
