Planned CDP revamp raises many questions
By R SIVANITHY
ACCORDING to a recent news report, the Singapore Exchange (SGX) is looking at allowing stockbrokers access to clients' Central Depository (CDP) accounts so that dealers and remisiers can see just what stocks their customers have at any one time.
To be sure, when this does materialise, it would be a step in the right direction, one that is arguably long overdue since it would help brokers tailor their advice and guidance to customers, especially those from the retail sector.
As SGX chief executive Magnus Bocker said when revealing the plan, the existing system is outdated and out of sync with developed markets so an upgrade is clearly needed.
However, several questions present themselves, the most obvious being why such a seemingly important and overdue revamp should take as long as three years to implement.
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