Two questions.
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Do we, the public, know about the systemic risks before the financial crisis?
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Do the ability to short more than 100% of outstanding shares or long calls/ puts leveraging more than 100% of the outstanding shares reveal a systemic risk?
This is not a systemic risk? This type of push or crash prices is not possible in Singapore. It use to be possible resulting in many suicides and bankruptcies, since then Singapore put in many measures to stop such excessively speculation. Do you know Singapore exchange do not offer option trading? For a good reason. I believe Xi wants to prevent such issues too… hence the financial reform and the slow opening of the financial markets. I know you will say not sophisticated, better stable than “sophisticated” and “advanced”.
Short-selling is not banned in Singapore, but SGX already requires investors to mark sell orders as “long” or “short” and publishes both daily and weekly reports on short-selling activity.
SGX intentionally reveals all your cards. Dare you to short excessively.