Taiwan, Singapore bourses ink cooperation pact

2014-09-12

A letter of intent was signed between Taiwan Stock Exchange Corp. and Singapore Exchange Ltd. Sept. 10 in Taipei City, paving the way for enhanced exchanges between two of Asia’s busiest bourses.

The pact calls for the establishment of a direct and cost-efficient trading platform within six months, enabling investors to trade, clear, settle and custodize stocks on either exchange. The tie-up may also extend to collaboration on financial derivatives such as bourse-traded funds, futures and options.

Financial Supervisory Commission Minister Tseng Ming-chung said under the agreement, the exchanges will also cross-list securities and pursue joint marketing initiatives.

“This undertaking is set to create synergies, expand scales of operation and sharpen global competitiveness. It also represents the success of ongoing government efforts to bring TWSE in line with the rest of the world.”

According to Tseng, progress is expected soon in negotiating similar deals with the London and Tokyo stock exchanges. “These partnerships will inject additional capital and fresh momentum to Taiwan’s securities markets,” he said.

Echoing Tseng’s remarks, TWSE Chairman Lee Sush-der said the pact is designed to serve as a practical mechanism for facilitating cross-border trade and providing more diversified services for investors.

“Taiwan and Singapore’s exchanges have built a broad consensus around expanding international cooperation,” Lee said. “This is possible due to differing investor profiles and the highly complementary nature of the economies of both nations.”

In response, SGX CEO Magnus Bocker said the agreement opens the door for the increasing number of international investors looking to capitalize on Greater China opportunities. “Real potential exists for cooperation in infrastructure and other areas so as to better serve these investors.”

Source: Taiwan Today (http://taiwantoday.tw/ct.asp?xItem=221478&CtNode=413)