My lazy work day was awoken when a fellow blogger informed me that Standard Charted will be exiting the intuitional cash equities, equity research and equities capital market.
Channel News Asia have an announcement here. This give you an idea how in tune with market news I am. I am really quite passive about it during working hours.
Obviously I am very disappointed if my SCB Online trading is impacted:
- It is my main trading platform because there are no minimum commission charges and it is a reason why I consistently have emails asking me why my commission is so low on my portfolio here.
- No custodian charges
- No dividend handling charges
- Assess to various markets
I actually really like the service.
The thing is, even their staff are rather shocked about this news. I think they are more anxious if this will affect their business unit more than anything. The message is very vague but if SCB online trading is making use of the equity capital market, then this will affect the consumers as well.
What I felt after consulting some ex brokers and from call in is that it is likely MAS would arrange an orderly transfer to another custodian, which may or may not be your choosing. The fear is whether there will be transfer charges and it will be catastrophic if there are. Already we are seeing from hardwarezone there are people selling out this morning and afternoon.
As far as we know, it is likely a transfer into CDP there will be a per counter charge and there shouldn’t be a charge levied at SCB Online trading end.
Lets not jump the gun. Lets wait until things becomes clearer.