The London Stock Exchange (LSE) has confirmed it will offer trading of Singapore-listed stocks on its market from next month.
On 19 November, the LSE will offer secondary trading in constituents of the Straits Times Index and the MSCI Singapore Free Index on its International Board, subject to final regulatory approval. Trades of Singapore-listed stocks executed on the LSE will be cleared by LCH.Clearnet and settled via the Singapore Central Securities Depository.
The International Board is the UK exchange group’s platform for cross-trading stocks from other markets. The LSE is in talks with other major exchanges to expand the range of securities available on the International Board.
As part of the cross-quotation agreement signed between the LSE and Singapore Exchange (SGX), UK stocks will be made available for trading on SGX in the first half of 2013.
According to the LSE, the initiative with SGX will give investors an effective extension of trading hours for included securities to around 15 hours each day, offering greater opportunity for investment, trading, and risk management for participants in London and Singapore. Issuers in both markets will benefit from having access to a new investor audience without the need for a separate listing.