SINGAPORE – The authorities here have three measures in place to safeguard against the risks related to securities trading like those fuelled by online discussion forums and social media chat groups.

These measures are to provide market transparency, curb any sharp price movements and take enforcement action against market misconduct, said Transport Minister Ong Ye Kung, who is a Monetary Authority of Singapore (MAS) board member.

Mr Ong added that there have been no signs that discussions in online forums or social media chat groups have led to any significant increase in the trading of securities listed in Singapore, he said in the wake of the populist stock movement WallStreetBets’ effect on certain United States share prices last month.

Market regulators MAS and Singapore Exchange Regulation (SGX RegCo) are also on heightened alert to such activities.

He was responding to a parliamentary question on Tuesday (Feb 16) by Mr Desmond Choo (Tampines GRC) on concerns regarding securities trading driven by online discussions and the safeguards against this, which could destabilise the securities market.

Stocks of firms such as video game retailer GameStop and cinema chain AMC Entertainment Holdings have been in the spotlight in the US for their volatility as retail investors drove up their prices and sent professional short sellers scrambling to cover their losses.

For instance, GameStop’s stock price shot to a high of US$483 per share on Jan 28, fuelled by discussions on the WallStreetBets forum of Internet discussion platform Reddit. The price later dipped briefly below US$90 on Feb 2. It closed at US$52.40 on Feb 12.

Earlier on Feb 2, MAS and SGX RegCo also warned investors that they should beware of risks of trading securities driven by online and social media discussions.

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