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Asean stock exchanges link together

Ben Cottrell | Jan. 19, 2010
Another deal signed between two countries.

THAILAND, 19 JANUARY 2010 – A  fifth linkage agreement has been signed between the stock markets of two countries in preparation for the envisioned electronic network of Southeast Asian Exchanges.

Last year, the Philippine Stock Exchange (PSE) announced plans to create a trading link among ASEAN countries that will allow investors to buy or sell ASEAN-listed securities through their local brokers.

This time, the PSE signed an agreement with the Ho Chi Minh Stock Exchange (HOSE), having previously signed with Bursa Malaysia (BM), Indonesia Stock Exchange (IDX), Singapore Exchange (SGX), and the Stock Exchange of Thailand (SET).

The agreement commits the two exchanges to "mutually collaborate and communicate information and experiences" to facilitate the development and efficient operations of their securities markets.

The ASEAN electronic link is expected to be launched this year, beginning with Bursa Malaysia and the Stock Exchange of Thailand, followed by the Singapore Exchange and the PSE.

HOSE brokers are veering away from floor trading and will remove floor trading in about two years. More than 95 per cent of their brokers do online trading.

"When first introduced, online trading significantly boosted their market’s value turnover. HOSE is definitely overtaking our more than 80-year-old exchange. It has only been operational for less than 10 years, but its growth is exponential and enviable. We can definitely learn much from them," said PSE president Francis Lim.

Prior to this, the PSE signed an agreement with the New York Stock Exchange to establish a strategic alliance. They will jointly develop new exchange-traded products, explore new opportunities in trading system architecture and technology and enhance market participant connectivity and data management.


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