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ASEAN Exchanges a step closer to trading interconnectivity

Four exchanges in ASEAN – Bursa Malaysia (BMB), The Philippine Stock Exchange (PSE), Singapore Exchange (SGX) and the Stock Exchange of Thailand (SET) – today said that they have made progress toward achieving interconnectivity amongst their respective markets as part of the broader ASEAN Exchanges Collaboration.

After its previous announcement of electronic trading platform, ASEAN Exchange today further enforces its trading interconnectivity, for which may pose a threat to HKEx and Tokyo Trading?

There has been a concern in difference between ASEAN that structure and technology of Singapore Exchange (SGX) excels amongst them, which may lead to competition for customers. But now, the enhancement of trading interconnectivity lets it leap.

Today, the four exchanges have appointed SunGard as the technology provider of the business-to-business intra-ASEAN cross-border order routing and trading platform that will electronically connect the markets of participating exchanges and allow investors and broker members to access multiple markets via a single connection. The platform is expected to go “live” by the end of the first quarter of 2012.

Dato’ Tajuddin Atan, Chief Executive Officer of Bursa Malaysia said: “The ASEAN trading link is an important development in enabling our markets to create greater ASEAN investment mobility amongst intermediaries namely the broker members and information vendors. This forms an integral part of the various initiatives in achieving the overall objective of the ASEAN Exchanges Collaboration to promote the growth of the ASEAN capital market.”

“The ASEAN trading link will facilitate global trades especially for retail investors seeking a bigger exposure in a fast growing ASEAN market,” said Mr Hans B. Sicat, President and CEO of PSE.

Mr Magnus Bocker, CEO of SGX, said, “We are pleased with the development of the ASEAN trading link which will enable investors to easily trade across markets in this region, the combined GDP growth of which is expected to average 6% annually across the ASEAN countries over the next 5 years. We expect this link will drive greater liquidity and investment mobility in ASEAN.”

Mr Charamporn Jotikasthira, President of SET said, “Signing the agreement with SunGard today is another milestone achieved for the ASEAN link project. However, technology alone is not sufficient to make this project a success. The ASEAN Exchanges will work together on marketing initiatives to promote the ASEAN link and the ASEAN asset class. Among others, there will be a networking event to promote cross-border partnerships among ASEAN brokers in Phuket in July.”

Adapted from Quamnet

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