NYSE Technologies, the commercial technology unit of exchange group NYSE Euronext, has been selected to provide the infrastructure for the proposed trading link between a group of exchanges from the Association of South-East Asian Nations (ASEAN) countries.
The technology provider signed a letter of intent with Bursa Malaysia, Philippine Stock Exchange, Singapore Exchange and Stock Exchange of Thailand – four of the six exchanges involved in the initiative – at the tenth ASEAN Exchanges CEO meeting in Manila. The other two exchanges involved in the plans are the Indonesia Stock Exchange and Vietnam’s Ho Chi Minh Stock Exchange.
The ASEAN trading link will electronically connect the six exchanges in a bid to facilitate cross-border order routing and trading and allow investors and members to trade in multiple ASEAN markets from their own country. Each participating exchange will also be able to connect to external routing networks, which is expected to attract new order flow into the ASEAN equities market.
As well as providing the network infrastructure to connect the exchanges, NYSE Technologies will offer services that provide integrated market data feeds from each market, a standardised entry point for trading and risk management and controls.
The ASEAN link will also be integrated with NYSE Technologies’ Secure Financial Transaction Infrastructure low-latency connectivity network, which links to multiple trading venues and market participants and is designed specifically for electronic trading and market data traffic.
“My colleagues at NYSE Euronext and I greatly value the opportunity to provide our leading-edge technology and proven expertise to this historic initiative in an increasingly important part of the world,” said Duncan L. Niederauer, CEO, NYSE Euronext, in a statement. “The ASEAN trading link will strengthen the competitiveness of the member exchanges and enable them to better serve their customers.
National and regional interest will be well served by giving investors greater access to global capital to facilitate new development, growth and wealth creation.”
“NYSE Technologies brings to the table vast experience in the Exchange solutions business and we are confident that they will deliver cutting edge solutions that meet all our requirements,” added Francisco Edralin Lim, president and CEO, Philippine Stock Exchange. “We are also excited about the possibilities of leveraging their extensive order routing networks to bring order flow into the ASEAN markets.”