Asean Stock Exchanges Agree to Electronic Linkage

THE PHILIPPINE STOCK EXCHANGE (PSE) announced in a press release that it has entered into a memorandum of understanding (MOU) with the other ASEAN Exchanges to create a trading linkage allowing investors from the ASEAN countries to buy or sell ASEAN-listed securities through their local brokers. The MOU was signed last month during the 7th ASEAN Exchanges CEOs Meeting in Bangkok, Thailand.

The electronic linkage project will commence with the creation of an electronic linkage currently referred to as the “ASEAN Common Exchange Gateway” will initially link Bursa Malaysia (BM) and The Stock Exchange of Thailand (SET) followed by the Singapore Exchange, Ltd. and the Philippine Stock Exchange, Inc.
The linkage will also include Indonesia Stock Exchange (IDX).

The gateway, expected to be launched in 2010, will be an entry point to be set up in each exchange for brokers and investors to trade securities listed on any of the ASEAN exchanges.

Mr. Francis Lim, PSE president and chief executive officer said “We welcome with much enthusiasm this project to set up an electronic linkage among the ASEAN Exchanges. Not only will the project mean a more meaningful partnership with our ASEAN counterparts but it will also lay the foundation for an integrated and harmonized ASEAN stock market.”

Lim cited the benefits of an integrated and harmonized market for securities among the ASEAN Exchanges, saying that this trading linkage will position the ASEAN as an asset class and a viable investment destination.

Lim added: “This linkage provides exciting opportunities for our market participants to expand their investment horizon to ASEAN markets. Any Filipino investor can now buy Indonesian, Malaysian, Thai and Singaporean securities with the same ease as buying Philippine securities and vice-versa. The trading linkage can also provide opportunities for investors outside ASEAN to easily trade ASEAN securities.”

Lim concludes: “This project is not just an integration of the ASEAN stock markets, but more importantly, reflects our vision of taking the PSE onto the global platform of a wider investment community. With this intra-ASEAN initiative, we’re taking along with us the growth of our listed companies, investors, market participants as well as the economy of the ASEAN countries.”