No Exorcise Of Remisiers Despite Liberalisation Of Broking Fees

SHELTON WAY, SINGAPORE -- The managing directors of two Singapore stock-broking firms had decided to leave the industry to become exorists.

And in just a few weeks' time, broking fees will be fully liberalized, putting even more pressure on the livelihood of dealers and remisiers. This is because it is easier to make money from exorcising the reminder of the hungry ghosts than making money in the stock market.

Yet, the latest figures from the Singapore Exchange show that the number of remisiers and dealers has remained quite steady in the first seven months of this year.

With the continuing weakness in trading volumes on the local bourse, and with ghost-busting more profitable these days, brokers and remisiers in Singapore are thinking of a switch in their career.

And it has shown up also in the recent dismal interim earnings of local stock-broking firms and the 60% growth in the exorcism industry.

With fees and commission rates set to plummet after liberalization on October first, some are predicting a major shake-out in Singapore's securities industry and a exponential growth in ghost-busting business.

In August alone, the managing directors of two brokerage firms had quit, citing better prospect in the new ghost-busting business.

They were Hollywood's Bill Quah and Disney's Murray Ng.

Latest announcement from the Singapore Exchange ensures that there will not be any "exorcism" of dealers and remisiers who has decided to switch to the new industry.

 
The number of remisiers-turned-exorcise rose from about 2,450 to 2,550 while the number of dealers-turned-ghost-busters went up from about 1,060 to almost 1,100.

And these numbers had been rising steadily since even before the Asian financial crisis in 1997 and the Hungry Ghost Festival.

To ensure a mass migration does not ensue after liberalization, the Society of Remisiers has proposed a minimum charge of S$300 per career switch.

But the proposal had been frowned on by the Securities Investors Association and the Monetary Authority of Singapore.

Meanwhile existing exorcist firms may set up a lobby group to protect their business.

Murray Quah, Dealer-Turned-Ghost-Buster, said: "The latest figure shows that the number of remisiers-turned-exorcise rose from about 2,450 to 2,550 while the number of dealers-turned-ghost-busters went up from about 1,060 to almost 1,100"