Singapore, Malaysia’s bourses to set up trading link

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Singapore and Malaysia unveiled a plan to create a trading link between each other by the end of this year that will allow each country’s investors to access the other’s stock market on Bursa Malaysia and Singapore Exchange.

The news was announced in Kuala Lumpur on February 6. Singapore and Malaysia’s regulators and national exchanges will work on the arrangements, conditions and fee structure for the system, which will connect markets with more than $1.2 trillion in value and about 1,600 listed companies.

The trading link will allow investors to trade and settle shares listed on each other’s stock market more conveniently and at lower costs. It will also cover post-trade arrangements like the clearing and settlement of the stocks traded. Investors of both countries will also be able to settle trades in local currency as if trading in the local market.

Analysts were broadly positive about the new trading link and said that it could be a step forward to further financial connectivity between capital markets across the ASEAN region.

The stock market trading link comes months after the closing of an earlier attempt to connect the markets, which started in 2012. Then, Singapore and Malaysia first linked their exchanges before joining hands with Thailand in what was called the ASEAN Trading Link. This was, however, shut in October last year.

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Reading Time: 1 minute

Singapore and Malaysia unveiled a plan to create a trading link between each other by the end of this year that will allow each country’s investors to access the other’s stock market on Bursa Malaysia and Singapore Exchange.

Reading Time: 1 minute

Singapore and Malaysia unveiled a plan to create a trading link between each other by the end of this year that will allow each country’s investors to access the other’s stock market on Bursa Malaysia and Singapore Exchange.

The news was announced in Kuala Lumpur on February 6. Singapore and Malaysia’s regulators and national exchanges will work on the arrangements, conditions and fee structure for the system, which will connect markets with more than $1.2 trillion in value and about 1,600 listed companies.

The trading link will allow investors to trade and settle shares listed on each other’s stock market more conveniently and at lower costs. It will also cover post-trade arrangements like the clearing and settlement of the stocks traded. Investors of both countries will also be able to settle trades in local currency as if trading in the local market.

Analysts were broadly positive about the new trading link and said that it could be a step forward to further financial connectivity between capital markets across the ASEAN region.

The stock market trading link comes months after the closing of an earlier attempt to connect the markets, which started in 2012. Then, Singapore and Malaysia first linked their exchanges before joining hands with Thailand in what was called the ASEAN Trading Link. This was, however, shut in October last year.

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