The CEOs of Southeast Asian stock exchanges have announced that they have hired Deutsche Bank to manage custody and settlement services. Their collaboration is part of a joint effort to integrate ASEAN markets following the launch of the ASEAN Trading Link in September 2012.
A group of CEOs known as ‘ASEAN Exchanges’ consists of representatives from Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam. The exchanges have a combined market capitalisation of approximately US$2.90 trillion and more than 3,600 listed companies.
The group recently met in Bali, Indonesia. The members aim to promote the growth of the ASEAN capital market by encouraging cross-border collaboration, and creating ASEAN products. They have said that they would continue to expend more efforts in improving post-trade services.
Tajuddin Atan, the CEO of Bursa Malaysia, said the appointment of a custody and settlement services provider was an important development, as the group could now provide streamlined and cost-effective post-trade procedures for cross-border transactions conducted via the ASEAN trading link.