Stock exchanges in Malaysia, Indonesia, Singapore, Thailand and the Philippines have signed a Memorandum of Understanding (MOU) to form an Asean direct market access electronic trading link.
The five exchanges say the creation of a single access point will ease cross-border trading and attract more international fund flows into the region.
Korn Chatikavanij, Thailand's finance minister comments: "Offering a single platform is a starting point to achieve our 2015 vision of a more integrated Aseab capital market with harmonised rules, regulations and practices."
The exchange's say they are currently evaluating the technology platform and scheduling implementation with a view to making the link live some time next year. Other Asean exchanges are being invited to join the consortium.
Hsieh Fu Hua, CEO of Singapore Exchange says part of the development plan will entail the establishment of national clearing houses capable of acting as central counterparties to facilitate clearing and settlement of cross-border trades.
"Brokers will benefit from building on their relationships with their home clearing houses and need not take on foreign counterparty risks," he says.