‘Asean Trading Link ceases operations’
KUALA LUMPUR: A system that connected stock markets in Malaysia, Singapore and Thailand has closed down, five years after its high-profile debut.
The Asean Trading Link started with Bursa Malaysia and Singapore Exchange Ltd (SGX), and was joined by the Stock Exchange of Thailand later on.
It was heralded at its launch as breaking the barriers to crossborder trade and offering a single entry-point to three of Southeast Asia’s biggest stock markets, with thousands of listed companies.
Bourses in Vietnam, the Philippines and Indonesia were expected to eventually take part.
The link’s end was announced quietly, with SGX’s only statement on the move made in a consultation paper on rule changes that was published on Tuesday.
“With effect October 6 2017, the Asean trading linkage will no longer be in operation,” said the company.
Trading turnover had grown since the link’s introduction, said the Asean exchanges in a response to questions.
That had “created new and efficient methods of facilitating cross-border transactions”, said the regional bourses group, explaining the decision to shut the link.
“We are not surprised to see the decommissioning of the Asean Trading Link,” said Melinda Sam, chief executive officer of the Securities Association of Singapore.
“Stockbroking firms had their own links to their counterparties way before Asean Trading Link was mooted,” she said. Bloomberg