ASEAN expands cross-jurisdictional cooperation
Investors will be able to access new opportunities across
Southeast Asia faster under a new initiative by the Singapore Exchange (SGX)
and the Monetary Authority of Singapore (MAS).
The Expedited Review Framework is part of the Association of
Southeast Asian Nations (ASEAN) Capital Markets Forum’s (ACMF) implementation plan,
with the aim of speeding up the processing of secondary listing applications in
Where corporations satisfy the requirements of the framework,
jurisdictions will review these applications within a shortened time period of
35 business days compared to the normal review time of up to 16 weeks.
Malaysia, Singapore and Thailand are the first three
jurisdictions to sign up to the initiative but other regulators and exchanges within
ASEAN are thought to be looking to join the framework.
“The signing of the memorandum of understanding indicates
the commitment of ASEAN jurisdictions to work towards integrating our capital
market,” said Lee Chuan Teck, assistant managing director (Capital Markets
Group), MAS. “We hope that the Expedited Review Framework will encourage more
listed companies to seek cross-listings in the region to broaden their investor
base. With more cross-listings, investors in the region will have easier access
to a broader choice of investments.”
ASEAN exchanges will be linked together by a new trading link as early as June 2012. The first stage of the project will see the
Singapore Exchange and Bursa Malaysia connected in June. The Stock Exchange of
Thailand will be added in August 2012, after its new trading engine goes live.
“SGX is pleased to join MAS, regional regulators and our
exchange partners in signing the MOU. The Expedited Review Framework for
Secondary Listings will shorten the time-to-market for secondary listings of
companies,” said Gan Seow Ann, president, SGX. “We expect this will allow
listed companies to leverage on ASEAN’s growth potential and that our customers
will have access to a wider choice of investment opportunities.”
Details for the addition of the other ASEAN exchanges,
including Vietnam’s Hanoi and Ho Chi Minh stock exchanges, the Indonesia Stock
Exchange and the Philippines Stock Exchange, will be announced at a future
ASEAN aims to bring more investment opportunities to its
members and increase liquidity in Southeast Asian financial instruments through
cross-border collaboration and regional initiatives.
The seven ASEAN exchanges, located in six countries, have a
combined market capitalisation of US$2 trillion and more than 3,600 companies
listed on their exchanges.