SINGAPORE: Malaysia and Singapore will set up a stock market trading link between Bursa Malaysia (BM) and Singapore Exchange (SGX) by the end of this year, regulators from both countries announced on Tuesday (Feb 6).
The trading link will allow investors to trade and settle shares listed on each other's stock market more conveniently and at lower costs.
It will also cover post-trade arrangements like the clearing and settlement of the stocks traded.
The Monetary Authority of Singapore (MAS) and the Securities Commission Malaysia will set up cross-border supervisory and enforcement arrangements, and work together with the two exchanges to operationalise the link.
The initiative is part of efforts by the ASEAN Capital Markets Forum to deepen financial connectivity across the region's capital markets.
Securities Commission Malaysia chairman Ranjit Ajit Singh said the trading link is a key step to encouraging ASEAN investors to invest in the region.