SGX welcomes Bursa collaboration to develop capital marts
KUALA LUMPUR: The Singapore Exchange Ltd (SGX) welcomes the proposal to collaborate with Bursa Malaysia Bhd on developing capital markets through a stock market trading link.
Prime Minister Datuk Seri Najib Razak yesterday announced the upcoming establishment of a “Malaysia-Singapore Connect”, which would enable investors to trade in both countries’ stock markets.
The Malaysia-Singapore Connect will enable access to more than 1,600 public-listed companies with a total market capitalisation (market cap) of more than US$1.2 trillion (RM4.69 trillion).
In his keynote address at the World Capital Markets Symposium 2018, here, Najib said he and his Singapore counterpart Lee Hsien Loong agreed that now was the ideal time to establish a market corridor connecting both countries’ stock exchanges.
SGX said this was the first time that both SGX and Bursa Malaysia had come together to establish a network that would enable cross-border clearing and settlement of traded stocks.
“This is a unique opportunity to galvanise wider interest in listed companies and boost trading activity in both markets.
“We will use technology to implement an end-to-end solution that delivers a better and more efficient experience for market participants,” said SGX chief executive officer Loh Boon Chye in a statement yesterday.
The joint regulatory supervision and enforcement arrangements by the Monetary Authority of Singapore and Securities Commission will allow investors to use the trading link with confidence.
Each market will continue to be governed by its own listing, trading and clearing rules and regulations.
SGX and Bursa Malaysia will jointly work out the operational model and safeguards for the trading link.