Even Malaysians who harbor no sympathy for the largely foreign CLOB investors have a reason to boo the performance. Here are the basic facts about the CLOB issue. Despite Malaysia's claims, CLOB was never an illegal market. Rather, it is an offshore market for Malaysian securities, governed by Singapore laws. The trading of Malaysian shares on CLOB in Singapore did not require authorization by the Malaysians.
Offshore trading occurs in many markets around the world.
The US has many exchanges that trade stocks listed in exchanges all over the world. Also, securities of many countries are traded in offshore markets, including Australian and Singapore company shares. CLOB was in compliance with Malaysian laws CLOB trading was also in full compliance with the applicable Malaysian laws, such as those relating to the registration and custody of CLOB shares. The Malaysian authorities have never accused the SES of violating any Malaysian laws, even in KLSE s statement. September 1 action did not make CLOB shares illegal or remove ownership rights from investors holding the shares.