Standard Chartered Equities Trading: Why You Might Lose Everything!

w1rbelw1nd

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Anyway, just an update about SCB securities loaning out clients holdings, I actually called SCB equities hotline and what they shared with me was they do not engage in such activities at all, and whatever holdings we have, be it SGX-listed holdings or US listed holdings will be tucked (boringly) inside the nominee/custodian accounts.
 

addict951

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This Marcus chua is who? condemned gao gao for talking rubbish
 

Sinkie

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Anyway, just an update about SCB securities loaning out clients holdings, I actually called SCB equities hotline and what they shared with me was they do not engage in such activities at all, and whatever holdings we have, be it SGX-listed holdings or US listed holdings will be tucked (boringly) inside the nominee/custodian accounts.

why not try call the various cfd provider in singapore and ask who they borrow their shares from? :s13:

try calling the scb equities hotline and ask where the shares are kept first k?
 
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Sinkie

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Mostly invested through Interactive Brokers. Only hold some etfs and shares through SCB.

I do believe we are supposed to be paid a rebate or fee if we lend out our share . Yes. It is common, but only if there is some prior agreement and/or we are paid for it. If SCB is really doing it then they are probably carrying our fraudulent activities.

About the point abt SCB being cheap, why not look at the cost structure? They do not have brokers to maintain accounts and key in trades and take up risks from a T+3 payment system ( how many remisiers went bust during e blumont saga and how many brokerages suffered losses?), and they use technology to minize overheads.

Rather than saying SCB is inappropriately using its clients shares to make itself profitable, I would rather think that they are just using technology to cut costs...

If you have any evidence that show that SCB is indeed engaging in SBL to normal retail investors. Please share. Would appreciate the enlightenment! :)

scb is a bank, so their main revenue are deposits and loan, and how do they attracts new deposit account? by offering no minimun commission trading to retailers and so to increase their deposits and loan opportunites lor :D
 

Perisher

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poems, ke and uob got cash up front account :s11:

http://www.edhec-risk.com/events/ot...ments/Till_PRMIA_Webinar_MF_Global_071812.pdf

presentation on MF global, for customer side they thought their accounts were safe since by US law the assets are segregated

however during liquidatation they realised the client's asset were less than what was suppose to be, as MF global trading department used the clients assets for trading

same for SCB... they lend out your shares to make extra income etc

during mega crisis, if SCB borrowing counter party goes down under and are unable to return the borrowed shares... SCB will eat into their equity.. but if their equity cannot tank.. then client bears the loss.. GG

Just something to add on, I think the main reason why author targeted SCB is because this bank not in good shape compared to other banks.

Refer to page 94 Part E article 11.2 https://www.sc.com/sg/personal-banking/tnc/en/_pdf/cb_investments-tnc.pdf

But then, I think all the custodian account have this clause. To be fair, for foreign stocks, there is no escaping this counter party risk.

Let me answer one by one, I type on hp 4-5times type until du lan also cannot post, dunno why.

Anyway, KE cash upfront I think is called trade prefunded.
Poems is Phillip Cash Prepaid Account
UOB someone else say got liao... next time do your homework first can? I thought Sinkie anyhow bomb that picture I ask you all to refer to.

2ndly, felixleong maybe right, banks overseas has been known to do things without others knowing, including money laundering, read
HSBC Judge Approves $1.9B Drug-Money Laundering Accord - Bloomberg
But having said that, Singapore does it's own checks, and banks in SG have to abide by SG laws, even if they are foreign companies, not US laws. The question here becomes, do you trust the ones auditing the accounts in SG?

Or put in another way, any bank is capable of doing whatever you think 'scb' is doing. What is stopping them? No banks can't do what other banks of equivalent size can do. Also, if one bank breaks the law to earn profit, how did it manage to be in financial trouble? duh.
What I'm trying to say is, all banks are equally possible to be doing what you think another bank can do. Also, GIC is invested in the SCB themselves, do you think they will anyhow let SCB runs itself without checks?

3rdly, yyhwin is right in saying the author target scb because it's finance is in trouble. The question is, why didn't it compare to other custodians account when using scb's case? custodian is not unique to scb. It's common all over the world. CDP is unique to sg. Other banks may/may not have finanical issues, but the author obviously leads many to think scb is the only custodian account as can be seen by some of the replies here. Overall, it's just a poor, headline grabbing article.

4th, the accountant, that's the way to do reporting, include more facts, leave out sensationalist personal opinions that exaggerate things...

Also, search for shiny things' reply on this matter in scb's thread, he knows even more.

And last but not least, I'm just saying what I know, if it's wrong, correct me with facts, thanks.
 

Rmondo

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erm... this is actually a very common practice to lend out shares to institutional clients, don't believe can go ask around other experienced investors here

from the defensiveness of your tone, maybe you have a lot of holding in SCB?

SCB charge the commission so low and no min, can't really make much profits that's why they depend also SBL(Securities borrowing and lending) to bring in additional income. (this is practice is also common is all brokerage house that custodizes your shares, I know because I used to work in this industry)

anyway I just sharing here, I don't benefit in anyway in regards to the outcome of SCB

cheers

If you actually look at their business model, you are required to open a deposit account with them by default to be able to then open a settlements account to trade.

They don't charge you high brokerage fees like the rest for quite a simple reason. They're not after the investors who trade large amounts, because why bother when there's a whole lot of competition out there and they don't have first mover advantage?

Are they operating on a high cost model? As mentioned by a few others, obviously not. Have you actually seen their trading platform? It is as bare bones as it gets, simple and gets the job done without all the extra tools. [Think budget airlines model]. Just to add on, they hit you back when you start trading in foreign markets with the larger spreads.

Back to the point on deposit account, essentially they're hoping that for ease of trading, investors will just utilise the deposit account that was already set up at the start, and at the same time hopefully leverage that and attract the very same investors that may have came because of the low cost trading to also use the other services such as their credit cards, loans, invest in their products, insurance, etc.

For the same reason why you accuse others of being customers and defensive, I can also say the same for you. Perhaps you're wondering why you're paying exorbitant brokerage fees?
 

w1rbelw1nd

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why not try call the various cfd provider in singapore and ask who they borrow their shares from? :s13:

Yea hahaha sounds like a good idea... Right. Like who will share this information -_-

All I wanted to do is to prove that SCB is not rightfully/legally engaging in such activities. Of course they may be doing it illegally, but that is different from them doing it legitimately.
 

Perisher

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This Marcus chua is who? condemned gao gao for talking rubbish

Marcus Chua:
I'm a junior analyst in a global established credit rating organisation.

Never trust credit rating organisation...
:s22:
 

felixleong

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Marcus Chua:
I'm a junior analyst in a global established credit rating organisation.

Never trust credit rating organisation...
:s22:

lol he junior analyst nia then blog until headlines big big
even yahoo news also show him liao
confirm famous already hehehe

maybe tomorrow his boss ask him go inside office to lim kopi

gg
 

felixleong

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Our Team

"Marcus relates economics and finance into his conversations with a quirky touch, equipped with a Bachelor in Banking & Finance. With much luck, he was able to secure a business development and analyst role in a consultancy firm that deals with private equity. Being brought up in South-East Asia’s financial hub, he believes that all Singaporeans should be financially savvy to ultimately achieve financial independence or freedom. On his leisure time, he loves to go-kart, play basketball and blow a few piece on his saxophone."

the link got his yandao picture somemore

"DollarsAndSense.sg is run by a group of university students and graduates. Among the editorial team, we have people in fields such as banking, computing, media studies and even a Muai Thai club director! Wel’ll leave you to figure out who’s who, but we think that what we bring to the table as a team is more important than our individual capabilities."

I can only say their writers are seems pretty young (mostly like fresh grad looks), can't imagine young man that haven't been through even 1 market cycle (Bull+Bear) writing financial articles to teach uncles and aunties

cheers
 

Asphodeli

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"Marcus relates economics and finance into his conversations with a quirky touch, equipped with a Bachelor in Banking & Finance. With much luck, he was able to secure a business development and analyst role in a consultancy firm that deals with private equity. Being brought up in South-East Asia’s financial hub, he believes that all Singaporeans should be financially savvy to ultimately achieve financial independence or freedom. On his leisure time, he loves to go-kart, play basketball and blow a few piece on his saxophone."

the link got his yandao picture somemore

"DollarsAndSense.sg is run by a group of university students and graduates. Among the editorial team, we have people in fields such as banking, computing, media studies and even a Muai Thai club director! Wel’ll leave you to figure out who’s who, but we think that what we bring to the table as a team is more important than our individual capabilities."

I can only say their writers are seems pretty young (mostly like fresh grad looks), can't imagine young man that haven't been through even 1 market cycle (Bull+Bear) writing financial articles to teach uncles and aunties

cheers

Wah liew, I play SGX 10 years then I start writing blog one ok. :(
 

klarklar

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I think someone ought to tell the writer Marcus Chua of Dollars and Sense that if SCB closes the business, our stocks are still intact. Closing a subsidiary business is different from the entire business (parent + all subsidiaries) going bankrupt. If Marcus Chua is worried about SCB, the entire bank, going bankrupt, then all of us have better things to worry about. Worry about your deposits in all banks if SCB goes bust because of the financial contagion effect.

I think it is highly unethical to get the facts wrong and smear a business reputation. When the business is adversely affected because of fear-mongering, jobs can be lost even if the writer is spreading untruths.
 

Sinkie

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I know today is not Sunday but is he from .....

He doesn't sounds like he has the necessary knowledge of the industry
 

Sinkie

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klarklar

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I know today is not Sunday but is he from .....

He doesn't sounds like he has the necessary knowledge of the industry

Marcus relates economics and finance into his conversations with a quirky touch, equipped with a Bachelor in Banking & Finance.

For someone who relates economics and finance into his conversations and is equipped with a Bachelor in Banking & Finance, I am shocked that he does not know the concept of segregated funds. Otherwise, he would have known that even if the broker goes bankrupt, clients' funds are safe. First paragraph of his article suggested that our funds are not safe if SCB decides to close its brokerage business which is very different from going bankrupt. And even if bankrupt, clients' funds are still safe because of segregated funds. Sorry to repeat myself but repetition is needed after misinformation from someone who tries to give an impression that he is knowledgeable.
 
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