Singapore Exchange (SGX) and Australian Stock Exchange (ASX) have launched a live broker pilot scheme aimed at testing the entire dealing and settlement cycle of stocks traded via the SGX-ASX securities co-trading link.
Under the initiative, trades between Singapore and Australia will be done through SGXLink and ASX World Link, the exchanges' multi-lateral cross border trading gateways. Brokers on the respective exchanges will be able to conduct trading via their existing desktops. The settlement cycle for all trades executed over the link will be T+3.
Richard Humphry, ASX managing director and CEO, says: "There is no other trading platform linking two exchanges so comprehensively. This link will see Australian investors being able to invest directly in Singapore-listed companies as easily as they now can in ASX-listed companies. They will gain access to real time pricing and announcements, and will be able to trade through their own stockbroker in their own currency."
Thomas Kloet, chief executive of SGX believes the joint initiative could prove a model for efficient cross-border access to other marketplaces.
The link will initially be limited to equities of each exchange's best known and most liquid companies. It is anticipated this will be extended to include futures contracts and other financial products, says Humphry.