The London Stock Exchange (LSE) has signed a memorandum of understanding with Singapore Exchange Limited (SGX) which lets participants trade the stocks of both exchanges in both markets, providing greater trading opportunities for investors.
The agreement launches the LSE’s International Board, which lets LSE members trade the top 36 SGX-listed companies and Singapore’s Straits Times Index and MSCI Singapore Index. Similarly, SGX members will be able to trade FTSE 100 securities on SGX’s existing GlobalQuote Board.
Investors will benefit from an effective extension of trading hours for included securities to around 15 hours each day. This will provide greater opportunity for investment, trading, and risk management for participants in London and Singapore.
For issuers in both markets, the initiative will offer a quotation on a new market without the need for a separate listing, giving access to a new investor audience and the opportunity to benefit from increased stock liquidity.
Trades of Singapore-listed stocks traded on the LSE will be cleared by LCH.Clearnet and settled via the Singapore Central Securities Depository. Clearing and settlement arrangements for the FTSE 100 stocks traded in Singapore are subject to further regulatory approval.
The trading of SGX-listed shares on LSE is expected to launch by early next quarter, while LSE-listed securities are expected to start trading on SGX in the first half of 2013, subject to relevant regulatory approval.
“As the world’s most international stock exchange, we are committed to bringing global capital and investors to London, as well as raising the profile of companies listed in our markets,” said Xavier Rolet, CEO of the LSE Group.
“We are excited to be partnering with the LSE to offer customers in our respective markets a platform for investing in some of the world’s largest companies,” said Magnus Bocker, CEO of SGX.
By Sophie Pallier