Asian Exchange Forum: Global Linkages Becoming The Norm

Stock exchange leaders from across the Asia-Pacific region agreed that international links between stock exchanges are becoming increasingly commonplace and essential for meeting the changing needs of global investors.

“There is a growing regional consensus that creating direct links between stock exchanges is an effective way for global investors to trade across borders,” said Mr. Sush-der Lee, Chairman of the Taiwan Stock Exchange Corporation (TWSE) at the ‘Asian Exchange Forum’ that concluded on Friday in Taipei.

He continued: “Today’s exciting panel discussions provided TWSE with great insights into how existing links, such as the ASEAN Trading Link, has provided regional benefits and increased the competitiveness of Asia’s capital markets. It is admirable to see other stock exchanges striving to create a wider trading platform and more choice for investors. We look forward to collaborating and learning from our exchange partners as we introduce our own trading links with regional exchanges”.

Mr. Lee moderated two roundtables on the importance of cross-border cooperation during the forum’s morning session, with senior leaders from ten stock exchanges, including Japan Exchange Group and Singapore Exchange, participating as panelists. Also in attendance were over 250 representatives from government, brokerages and other financial institutions. Mr. Lee then led a closed-door roundtable with regional stock exchange leaders in the afternoon.

The topic of how exchanges can best cooperate with each other was vigorously debated amongst the panelists. The formation of international links was identified as a promising way for stock exchanges to introduce more diverse investment channels, attract more foreign investors, expand revenue streams and lower transactions costs. A wider range of international links in the region would also enable brokers to lower the cost of their cross-border trading services, while also adding benefits in areas such as human resources, simplified trading systems and maintenance.

Lawrence Shan, Senior Vice President of TWSE, also identified a number of other areas in which stock exchanges could cooperate during his opening remarks. These areas included cross-listings, index licensing, new product development and technical cooperation.