ASEAN bourses expect to start cross border trading in 2012

Singapore (PTI): The four main stock exchanges in the Association of South East Asia Nations (ASEAN) is expected to go live by the end of the first quarter of 2012.

The four exchanges today appointed SunGard as the technology provider of the business-to-business intra-ASEAN cross-border order routing and trading Platform, a joint statement from the four bourses said this week.

The Sunguard would electronically connect the markets of Bursa Malaysia (BMB), the Philippine Stock Exchange (PSE), Singapore Exchange (SGX) and the Stock Exchange of Thailand (SET), allowing investors and broker members to access multiple markets via a single connection.

Welcoming the Sunguard appointment, SGX CEO Magnus Bocker said: “The development of the ASEAN trading link which will enable investors to easily trade across markets in this region, the combined GDP growth of which is expected to average 6 per cent annually across the ASEAN countries over the next 5 years.”

Bursa Malaysia CEO Tajuddin Atan said: “The ASEAN trading link is an important development in enabling our markets to create greater ASEAN investment mobility among intermediaries namely the broker members and information vendors.

This forms an integral part of the various initiatives in achieving the overall objective of the ASEAN Exchanges Collaboration to promote the growth of the ASEAN capital market.”

“The ASEAN trading link will facilitate global trades especially for retail investors seeking a bigger exposure in a fast growing ASEAN market,” Hans B Sicat, President and CEO of PSE said.

Charamporn Jotikasthira, President of SET said, “Signing the agreement with SunGard today is another milestone achieved for the ASEAN link project. However, technology alone is not sufficient to make this project a success”.

“The ASEAN Exchanges will work together on marketing initiatives to promote the ASEAN link and the ASEAN asset class. Among others, there will be a networking event to promote cross-border partnerships among ASEAN brokers in Phuket in July, he added.

Nasser Khodri, Asia Pacific managing director of US-based SunGard’’s global trading business, said, “This important initiative represents a key milestone on the road to an integrated ASEAN capital market, and we are delighted to be chosen as a partner in this key initiative for the region.”