News and resources on capital markets, exchanges, trade execution and post-trade settlement.

Singapore and Thai stock exchanges forge DR linkage

Source: SGX

Singapore Exchange (SGX) and The Stock Exchange of Thailand (SET) are advancing ASEAN’s securities market cooperation with the introduction of the Thailand-Singapore DR Linkage, the first exchange-level DR cooperation in ASEAN, bringing investors unparalleled access and efficiency to the region’s growth markets.

Under the Thailand-Singapore DR Linkage, depository receipts (DR) representing shares in an SGX-listed security will be issued for trading on SET and vice versa. Investors in Thailand and Singapore will benefit from the ease of buying and selling securities via a DR through their local broker arrangements and in their domestic currency. The DRs will trade according to their respective home market rules and regulations.

This collaboration meets rising demand from market participants in both countries for more choice in their investments, playing to the respective sectoral strengths such as Real Estate Investment Trusts (REITs) in Singapore as well as fast-growing companies in Thailand. It leverages on existing market infrastructure and ecosystems to achieve greater connectivity between the two markets - the biggest among the 10 economies that form the Association of Southeast Asian Nations (ASEAN). The exchanges expect to introduce the first DR of the Linkage in the coming 12 months.

Loh Boon Chye, Chief Executive Officer of SGX, said, “We have been partners with the SET for many years and the Thailand-Singapore DR Linkage will enable us to build scale together and set a blueprint for future regional collaboration. It raises ASEAN’s profile and offers investors enhanced access with unmatched efficiency. By harnessing each other’s capabilities, we can bring greater connectivity not only across borders but across multiple asset classes.”

Pakorn Peetathawatchai, President of SET, said, “The Thailand-Singapore DR Linkage not only enables investors to conveniently diversify their portfolio at home country, but also improves price efficiency by linking the liquidity of the two premier ASEAN markets. The collaboration is aligned with SET’s key strategy to venture new frontiers: adding products with international exposure to widen business opportunities while offering new investment alternatives to investors.”

Comments: (0)