The Singapore Exchange (SGX) says it is shutting down the securities co-trading link it established with the Australian Stock Exchange (ASX) following poor demand for the service.
The SGX-ASX trading link service will be discontinued at the close of business day on Friday 29 September 2006.
The link was introduced in 2001 to enable brokers on the respective exchanges will be able to conduct trading via their existing desktops. Australian investors being able to invest directly in Singapore-listed companies, and vice versa.
But in February 2006, the Australia Stock Exchange (ASX) discontinued the inbound service from ASX to SGX, although the Singapore exchange kept the outbound service (from SGX to ASX) operational and under review.
However due to persistently low demand, SGX says it has decided to discontinue the outbound service and both exchanges have agreed to close the SGX-ASX trading link.
After 29 September 2006, investors who wish to sell their ASX-listed shares held with SGX Central Depository (CDP) must first transfer their positions to a custody account with a securities broking firm before selling the shares. To facilitate the transfer, SGX will absorb the cost of the transfer from 15 August to 31 December 2006.
SGX says it remains committed to building an Asian gateway that includes the development of alliances that offer participants a larger network of marketplaces.