The link will go live at 12.30pm EDST (Sydney) and 9.30am (Singapore) on 20 December.
The new trading arrangement - the first time that two exchanges anywhere in the world have entered into such a facility - is designed to deepen the pool of investors by providing direct links for Singapore investors into Australia, and vice versa.
From 20 December investors in each country will be able to gain easy access to the securities of the top companies listed on the other exchange, as easily as they currently can the securities of companies in their home market.
Initially fifty securities from each exchange will be made available for cross-border trading. Those securities have been selected on criteria such as inclusion in a share price index, liquidity, market capitalisation or familiarity. It is expected more securities will be added to the list as market interest develops.
"After significant effort by both exchanges, we are pleased that this pioneering trading and clearing link is operationally ready for investors in both marketplaces," Thomas Kloet, CEO of SGX, said.
"This is a historic step, and we believe a necessary one, that can only provide great benefits to the companies and investors in each market. The Singapore link joins ASX's existing one-way link to North America's major markets so that brokers participating in ASX World Link can now offer Australian investors direct access to the world's best and most successful companies," ASX managing director and CEO Richard Humphry said.
Under the trading link, investors will be able to buy shares in the other market through their own broker, in their own currency, buying directly into the market where the trade in those securities is most liquid.
Once a transaction is settled, the securities will be held in an omnibus custody account with each exchange's nominated custodian on behalf of the investor, just as usually occurs now with institutions' overseas-held securities.
ASX and SGX look forward to implementing this exciting initiative and in particular welcoming those companies whose securities will be among the first to be made available to foreign investors through a comprehensive, user-friendly, international co-trading link.
