A group of Asean stock exchanges have appointed Nyse Technologies to build a direct market access electronic trading link.
Last February Bursa Malaysia, the Philippine Stock Exchange, Singapore Exchange and the Stock Exchange of Thailand outlined plans to create a single access point to ease cross-border trading and attract more international fund flows into the region. Indonesia's exchange was initially part of the group but is no longer involved.
The partners have now signed a letter of intent appointing Nyse Euronext's IT unit to design, build and manage the technology required for the trading link.
Nyse Technologies says its system will be underpinned by a resilient networking infrastructure that will interconnect the Asean member exchange's and, through them, their respective communities.
The system will include services that tap this network to provide integrated market data feeds from all the participating markets and a standardised entry point for trading. Expansion of the trading link's markets will be helped by the risk management and controls put in place, says Nyse.
In addition, the system will integrate with the Nyse Euronext communication network infrastructure, SFTI. This will give STFI members streamlined and cost effective access to trading in the Asean Trading Link markets.
Duncan Niederauer, CEO, Nyse Euronext, says: "The Asean Trading Link will strengthen the competitiveness of the member exchanges and enable them to better serve their customers. National and regional interest will be well served by giving investors greater access to global capital to facilitate new development, growth and wealth creation."
Francisco Edralin Lim, CEO, Philippine Stock Exchange, adds: "Nyse Technologies brings to the table vast experience in the Exchange solutions business and we are confident that they will deliver cutting edge solutions that meet all our requirements. We are also excited about the possibilities of leveraging their extensive order routing networks to bring order flow into the Asean markets."