Singapore Exchange (SGX) announced today that it has signed a Memorandum of Understanding (the “Agreement”) with London Stock Exchange (LSE) to jointly develop capabilities which will enable cross-trading of their largest and most actively traded stocks.
Under the Agreement, SGX members will be able to trade FTSE100 securities on SGX’s GlobalQuote Board while LSE members will be able to trade 36 securities of Singapore’s leading indices on LSE’s newly-created International Board.
The collaboration will enable investors to have access, over extended hours, to the most actively traded securities in both markets, providing them with more opportunities for investment, trading, and risk management. For issuers in both markets, the initiative will offer quotation on a new market without the need for a separate listing, giving access to a new investor audience and the opportunity to benefit from increased stock liquidity.
To ensure full regulatory and operational readiness, the proposed collaboration will occur in stages. Subject to regulatory approvals, the relevant SGX securities will be quoted on LSE’s newly created international Board by early next quarter while the relevant LSE securities will be quoted on SGX’s GlobalQuote by 1H 2013.
Mr Magnus Bocker, CEO of SGX, said: “We are excited to be partnering with LSE to offer customers in our respective markets a platform for investing in some of the world’s largest companies. This partnership delivers on the SGX Asian Gateway offering and is significant for three reasons.
“First, we are broadening the coverage of GlobalQuote so customers in Singapore can now invest in listed companies across the globe, beyond the U.S. and Asia into Europe. Second, we are raising the overseas profile of our top Singapore-listed companies and offering them more liquidity and access to global capital. Third, this international partnership effectively allows investors to act quickly on information and news flow across several time zones and manage their risks almost round-the-clock.”
Mr Xavier Rolet, CEO of LSE Group, said: “I am delighted to announce the launch of this new partnership with Singapore Exchange. Our “International Board”, a new and innovative concept, will offer our customers around the globe significant, previously inaccessible opportunities.
“As two of the world’s most international stock exchanges, we are committed to bringing global capital and investors to London, as well as raising the profile of companies listed on our markets. This collaboration between LSE and SGX will bring exciting opportunities to both FTSE100 companies and our trading customers around the world.”
Trading of Singapore stocks in London will be carried out in their respective listed currencies including Singapore and U.S. dollars, and trading on SGX of FTSE100 stocks will be in Pound Sterling. Dedicated market makers are expected to be in place in London and Singapore to provide liquidity on LSE’s International Board and on SGX’s GlobalQuote.