The trading link will allow investors to trade and settle shares listed on each other’s stock market in a more convenient and cost-efficient manner. Retail investors notably will benefit from such a link.
“The establishment of this trading link is an important step towards encouraging ASEAN investors to invest in ASEAN. The ease of accessibility for investors will contribute towards greater vibrancy in our markets. Once operationalised, this pilot initiative can form the basis for future connectivity among ASEAN markets,” said Tan Sri Dato’ Seri Ranjit Ajit Singh, Chairman of both SC Malaysia and ACMF Chairman.
This initiative follows from the ongoing efforts of the ASEAN Capital Markets Forum (ACMF) to deepen financial connectivity across the region's capital markets. The bilateral link between BM and SGX will extend beyond trading to cover post-trade arrangements like the clearing and settlement of the stocks traded. In relation to this strategic initiative, MAS and SC will set up cross-border supervisory and enforcement arrangements, and work together with the two exchanges to operationalise the link.
“The trading link will help lower trading costs for investors and encourage greater cross-border investments in the stocks listed on each other’s exchanges. This will improve the liquidity of both our stock markets. I hope this initiative will in time expand to include the rest of the stock exchanges in ASEAN,” said Lee Boon Ngiap, Assistant Managing Director, MAS.