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Singapore and Malaysia to link stock market trading

It will lower trading costs for investors.

The Monetary Authority of Singapore (MAS) and the Securities Commission Malaysia (SC) will link the stock market trading between Bursa Malaysia (BM) and Singapore Exchange (SGX) by end of this year.

“The trading link will allow investors to trade and settle shares listed on each other’s stock market in a more convenient and cost-efficient manner. Retail investors notably will benefit from such a link,” said MAS and SC in a joint press release.

Besides trading, the link will also cover post-trade arrangements like the clearing and settlement of the stocks traded. In line with this, MAS and SC will form cross-border supervisory and enforcement arrangements operationalise the bilateral link.

“The trading link will help lower trading costs for investors and encourage greater cross-border investments in the stocks listed on each other’s exchanges. This will improve the liquidity of both our stock markets,” said Lee Boon Ngiap, assistant managing director of MAS.

“The ease of accessibility for investors will contribute towards greater vibrancy in our markets. Once operationalised, this pilot initiative can form the basis for future connectivity among ASEAN markets,” added Tan Sri Dato’ Seri Ranjit Ajit Singh, chairman of SC Malaysia and ASEAN capital Markets Forum (ACMF).
 

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