- Singapore Depository Receipts (SDR) will be available for trading by retail and institutional investors on 30 May 2023
- Thailand-Singapore DR Linkage intensifies pan-ASEAN connectivity and promotes stock market collaboration
Singapore Exchange (SGX Group) today announced it will be launching a new product, Singapore Depository Receipts, (SDR1) under the Thailand-Singapore DR Linkage on 30 May 2023. A Memorandum of Understanding (MOU) will also be signed to mark the partnership between SGX Group and the Stock Exchange of Thailand (SET) on the DR Linkage. This is the first exchange-level DR cooperation in ASEAN, demonstrating an important step forward in enhancing regional connectivity. This collaboration leverages the strengths of two well-established exchanges to promote more joint investment and business opportunities for both exchanges and their market participants.
SGX Group is introducing SDR to provide Singapore investors with more efficient access to regional markets. Investors can trade SDR via their local brokers, gaining greater exposure to overseas listed securities, and enjoy more convenience of trading through their usual platform. These SDR will trade on SGX securities market during local trading hours and in Singapore dollars.
The inaugural SDR are issued by Phillip Securities Pte Ltd and represent the beneficial ownership interest in the underlying securities2 of Airports of Thailand (AOT), CP All (CPALL) and PTT Exploration & Production (PTTEP), which are constituents of the benchmark SET50 Index.
Loh Boon Chye, Chief Executive Officer, SGX Group, said, “It has been an exciting journey for us working alongside SET to bring our SDR under the DR Linkage to fruition. ASEAN is increasingly emerging as an investment thematic among investors. With greater connectivity between Singapore and Thailand, investors can now widen their investment horizons and participate in the growth potential of ASEAN. I am optimistic the SDR will spur increased participation across borders and create more vibrancy in our capital markets, and for the DR Linkage to be the catalyst to spark further collaboration between exchanges in this region.”
Pakorn Peetathawatchai, President, SET, said, “The launch of the Thailand-Singapore DR Linkage marks a significant milestone for both exchanges. As investor needs evolve, the linkage facilitates investors’ access from one market directly to another in local currency, bringing more liquidity and price efficiency. This collaboration is part of our commitment to grow connectivity between exchanges in ASEAN. I am confident that the linkage will be a key platform connecting the world to this region.”
Luke Lim, Managing Director, Phillip Securities Pte Ltd (a member of PhillipCapital), said, “We are honoured to be the first issuer for SGX Singapore Depository Receipts under the Thailand-Singapore DR Linkage. At PhillipCapital, we are fuelled by our desire to serve our investors better, and we recognise that today, investors have a wide range of investment choices as well as high expectations on potential trading opportunities. These new SDR offer Singapore investors new opportunities to invest in the Thai market.”
For more information on SDR, please visit sgx.com/sdr
[1] Singapore Depository Receipts (SDR) are instruments each representing beneficial interest in an underlying security listed on an overseas exchange.
[2] A Non-Voting Depository Receipt (NVDR) is a trading instrument issued by Thai NVDR Co., Ltd., a subsidiary wholly owned by the Stock Exchange of Thailand (SET). NVDRs are automatically regarded as listed securities on the SET.
