SGX and ASX prepare for co-trading initiative

SGX and ASX prepare for co-trading initiative

Singapore Exchange Ltd (SGX) and Australian Stock Exchange Ltd (ASX) have signed a Memorandum of Understanding (MOU) to share information on regulatory and market surveillance issues relating to joint trading between the exchanges.

The MOU, which relates to transactions executed via the SGX-ASX link, addresses the role of market surveillance units; the sharing of market surveillance information; and the establishment of core trading principles in ASX Business Rules and SGX-ST Rules regulating trades via the link.

The two exchanges have announced the list of stocks which will be initially available for co-trading. These stocks have been selected according to certain criteria, including inclusion in a share price index, liquidity and market capitalisation or familiarity. SGX and ASX expect to add more securities to the list as market interest develops.

Thomas Kloet, CEO of SGX, comments: "Today's announcement brings us a step nearer to launching the first seamless cross border equities trading link developed by two exchanges."

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