Singapore and Malaysia to set up stock market trading link by end-2018

• Feb 06, 2018

SINGAPORE – The Singapore and Malaysia stock markets are set to be connected by a trading link by the end of this year which will allow investors to trade and settle shares in both markets in a more convenient and cost-efficient way.

The Monetary Authority of Singapore (MAS) and the Securities Commission Malaysia (SC) will work together with the two exchanges to establish such a link, both said in a joint release on Tuesday (Feb 6).

The bilateral link between the Singapore Exchange (SGX) and Bursa Malaysia (BM) will extend beyond trading to cover post-trade arrangements such as the clearing and settlement of traded stocks, they added.

The MAS and the SC will set up cross-border supervisory and enforcement arrangements.

The initiative follows the ongoing efforts of the Asean Capital Markets Forum (ACMF) to deepen financial connectivity across the region’s capital markets.

Said SC chairman Seri Ranjit Ajit Singh, who is also chairman of ACMF: “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.”

MAS assistant managing director Lee Boon Ngiap said 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,” he said. “I hope this initiative will in time expand to include the rest of the stock exchanges in Asean.”

Source: http://www.straitstimes.com/business/companies-markets/singapore-and-malaysia-to-set-up-stock-market-trading-link-by-end-2018