HA NOI (VNS)— The ASEAN Trading Link, which will connect exchanges throughout Southeast Asia, went live on Tuesday with a link-up between the Singapore Exchange and Bursa Malaysia.
The trading platform is an initiative by the ASEAN Exchanges, a collaboration of seven ASEAN stock exchanges, to boost regional capital markets and offer more investment opportunities for investors.
"The ASEAN Trading Link marks the first milestone for ASEAN Exchanges in breaking down barriers to cross-border trade," said Dato Tajuddin Atan, chief executive officer of Bursa Malaysia.
"The trading link is an excellent conduit to tap regional growth opportunities as it allows investors easy access to a wider investment selection across connected markets."
Under the ASEAN Trading Link, investors in one market will be able to directly access markets in another through their brokers. Analysts believe the new platform will help them save costs since they will not need to pay additional fees charged by brokers on both sides.
The Stock Exchange of Thailand is expected to link-up from next month.
The combined market capitalisation of the three markets reached US$1.4 trillion with 3,000 listed companies.
This accounts for about 70 per cent of the total market capitalisation of the ASEAN exchange group.
Viet Nam's two exchanges will participate at a later date, together with stock exchanges in the Philippines and Indonesia.
To date, 31 brokers from across Malaysia, Singapore and Thailand have joined ASEAN Trading Link.
The Southeast Asian Exchanges group hopes the new trading system will encourage more inflows of funds, helping them compete with the fast-growing markets of Hong Kong, China and India. — VNS