Trades between Singapore and Australia will be done through SGXLink and ASX World Link, the exchanges' multi-lateral cross border trading gateways. The settlement cycle for all trades done will follow that of the home markets, which is currently T+3 in both markets.
Mr Thomas Kloet, CEO of SGX said, "The launch of our broker-pilot marks an important milestone. The linkage will allow for the efficient trading, settlement and holding of ASX- and SGX-quoted securities by participants in both markets. Our broking members will be able to access market and trading information on the selected stocks and transmit orders through their existing trading terminals directly into ASX's market."
"It is also significant as a world first. We believe that we have created the right model for efficient cross-border access to other marketplaces. We are committed to the further development of this, to ensure its continued success and the success of our other alliances.
This is in line with our strategy to enhance our market reach, liquidity, and product range to meet the needs of investors," added Mr Kloet.
ASX managing director and CEO, Mr Richard Humphry said, "At the time we signed the original agreement, it was described as a world first. That remains the case; there is no other trading platform linking two exchanges so comprehensively. This link will see Australian investors being able to invest directly in Singapore-listed companies as easily as they now can in ASX-listed companies. They will gain access to real time pricing and announcements, and will be able to trade through their own stockbroker in their own currency, receiving all the benefits of secure settlement and custody arrangements they currently enjoy.''
"While initially confined to equities of each exchange's best known and most liquid companies, there is no reason why the list should not be extended over time to include futures contracts and other financial products," Mr Humphry added.
