ASEAN Exchanges to Develop Electronic Trading Link

Five ASEAN exchanges, Bursa Malaysia Berhad, Indonesia Stock Exchange, Philippine Stock Exchange, Inc., Singapore Exchange and the Stock Exchange of Thailand, today signed a Memorandum of Understanding (MOU) to form an ASEAN electronic trading link to enhance the competitiveness of their capital markets. This e-trading link, through one single access point, allows intra-ASEAN cross border trading and will attract more international funds into ASEAN. “Enhancing competitiveness and promoting innovation must be two main priorities of the ASEAN exchanges. Working together as one regional market place, we open up unlimited investment opportunities. The cooperative spirit, which is central to the MOU we are signing today, is the key to success in global competition. The benefits of this MOU will be mutual, a win-win solution for all, including our listed companies, investors and market participants”, said Chairman of SET, Mr. Pakorn Malakul Na Ayudhya. This initiative is clearly another important milestone for ASEAN nations, “This project will strengthen our regional financial stability by deepening regional capital markets and facilitating progressive liberalization of our financial sector. A stronger, integrated and more competitive ASEAN is necessary to respond to the changing global landscape. Offering a single platform is a starting point to achieve our 2015 vision of a more integrated ASEAN capital market with harmonized rules, regulations and practices”, Mr. Korn Chatikavanij, Finance Minister said. Bursa Malaysia’s CEO, Dato’ Yusli Mohamed Yusoff pointed out that, “Forging closer cooperation among regional exchanges is crucial for us to remain globally relevant. As a progressive exchange, Bursa Malaysia is supportive of this initiative which will encourage greater intra-ASEAN trading. An integrated ASEAN capital market will raise the profile of this region’s securities to the global investment community.” “Our consideration for the development of this linkage is based on the following principles: maintain liquidity in home markets, gain support from local brokers by avoiding disintermediation, and comply with home regulations. Our goal is to develop a strong and healthy ASEAN capital market based on a prudential risk management framework”, Indonesia Stock Exchange’s President Director, Mr. Erry Firmansyah added. In addition, Philippine Stock Exchange’s President and CEO, Mr. Francisco Edralin Lim described the new service offering to regional and international investors. “This linkage provides exciting opportunities for our market participants to expand their investment horizon to ASEAN markets. Any Filipino investor can now buy Indonesian, Malaysian, Thai and Singaporean securities with the same ease as buying Philippine securities and vice-versa. This linkage can also provide opportunities for investors outside ASEAN to easily trade ASEAN securities. This will position ASEAN as an asset class and a viable investment destination.” Mr. Hsieh Fu Hua, CEO of Singapore Exchange said, “This linkage paves the way for ASEAN depositories to custodize ASEAN securities for their account holders. The ASEAN exchanges will work towards establishing their clearing houses as central counterparties to facilitate clearing and settlement of cross border trades. Brokers will benefit from building on their relationships with their home clearing houses, and need not take on foreign counterparty risks.” “Apart from the exchanges signing the MOU today, this linkage is open to other ASEAN exchanges. We are now in the process of evaluating a technology platform and scheduling the implementation among the exchanges. The e-trading link is expected to go live next year. As secretariat of this initiative, the Stock Exchange of Thailand would like to thank the ASEAN exchanges for their effort and commitment. Signing this vital MOU today opens a new chapter in the collaboration towards an integrated, harmonized and attractive ASEAN market place”, Ms. Patareeya Benjapolchai, President of the Stock Exchange of Thailand added. For more information, please contact Public Relations Unit, the Corporate Communications Dept.: Ladawan Kantawong Tel: 0-2229-2036 / Kanokwan Khemmalai Tel: 0-2229-2048 / Panitee Chatpolarak Tel: 0-2229-2792

• ข่าวPhilippine Stock Exchange
• ข่าวSingapore Exchange
• ข่าวBursa Malaysia
• ข่าวo:eco
• ข่าวo:fin