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Malaysia And Singapore To Set Up Stock Market Trading Link

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Tuesday, February 06, 2018  10.07AM / Mondo 

The Monetary Authority of Singapore (MAS) and the Securities Commission Malaysia (SC) will work together to facilitate the establishment of a stock market trading link between Bursa Malaysia (BM) and Singapore Exchange (SGX) by the end of this year. 

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. 

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. 

Tan Sri Dato’ Seri Ranjit Ajit Singh, SC Malaysia Chairman and also ACMF chairman, said “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.” 

Mr Lee Boon Ngiap, Assistant Managing Director, MAS, 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. I hope this initiative will in time expand to include the rest of the stock exchanges in ASEAN.” 

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Background

Malaysia Prime Minister Dato’ Sri Mohd Najib Tun Abdul Razak announced the establishment of a stock market trading link between Bursa Malaysia and Singapore Exchange this morning at the World Capital Market Symposium 2018. Please refer to his speech at the Office of the Prime Minister’s website.

The ACMF was established under the auspices of the ASEAN Finance Ministers in 2004 to serve as a forum for the heads of securities regulators in the ASEAN region to discuss policy issues relating to capital market development. More details can be found at the ACMF’s website.

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