James A. Loyola, Manila Bulletin Online Wrote:PSE joins electronic trading link with ASEAN Exchanges

By JAMES A. LOYOLA

The Philippine Stock Exchange (PSE) has entered into a memorandum of understanding (MoU) with the other ASEAN Exchanges to create an electronic trading linkage allowing ASEAN investors to buy or sell ASEAN-listed securities through their local brokers by 2010.


The MoU was signed on Monday during the 7th ASEAN Exchanges CEOs Meeting in Bangkok, Thailand.

"We welcome with much enthusiasm this project to set up an electronic linkage among the ASEAN Exchanges. Not only will the project mean a more meaningful partnership with our ASEAN counterparts but it will also lay the foundation for an integrated and harmonized ASEAN stock market," said PSE president Francis Lim.

Lim cited the benefits of an integrated and harmonized market for securities among the ASEAN Exchanges, saying that this trading linkage will position the ASEAN as an asset class and a viable investment destination.

"This linkage provides exciting opportunities for our market participants to expand their investment horizon to ASEAN markets. Any Filipino investor can now buy Indonesian, Malaysian, Thai and Singaporean securities with the same ease as buying Philippine securities and vice-versa," said Lim.

He added that the trading linkage can also provide opportunities for investors outside ASEAN to easily trade ASEAN securities.

The ASEAN stock exchanges are presently composed of Bursa Malaysia (BM), Ho Chi Minh Stock Exchange (HOSE), Indonesia Stock Exchange (IDX), Philippine Stock Exchange (PSE), Singapore Exchange (SGX) and the Stock Exchange of Thailand (SET).

Based on the MOU, the project will start with the creation of an electronic linkage currently referred to as the "ASEAN Common Exchange Gateway" which will be an entry point to be set up in each exchange for brokers and investors to trade securities listed on any of the ASEAN exchanges.

This ASEAN electronic link is expected to be launched in 2010, beginning with Bursa Malaysia and the Stock Exchange of Thailand, followed by the Singapore Exchange and the Philippine Stock Exchange.

Lim said these matters will be submitted to the Securities and Exchange Commission for consideration and approval at an appropriate time.

"This project is not just an integration of the ASEAN stock markets, but more importantly, reflects our vision of taking the PSE onto the global platform of a wider investment community. With this intra-ASEAN initiative, we’re taking along with us the growth of our listed companies, investors, market participants as well as the economy of the ASEAN countries," Lim concluded.