A group of four exchanges involved in the Association of Southeast Asian Nations trading link has selected trading technology provider SunGard to supply the infrastructure for the network following a protracted selection process.
SunGard will link four of the seven ASEAN exchanges – Bursa Malaysia, the Philippine Stock Exchange (PSE), Singapore Exchange (SGX) and The Stock Exchange of Thailand – to facilitate cross-border order routing and trading via a single connection using its Valdi trading tool suite. The link is expected to become operational by the first quarter of next year.
The other three exchanges – Vietnam's Hanoi Stock Exchange and Ho Chi Minh Stock Exchange, and the Indonesia Stock Exchange – will connect at a later date.
Valdi comprises a global, multi-asset class order management, market access, liquidity and compliance management tools and hosted services. Using the ASEAN trading link, market participants will be able to route orders to the four exchanges and receive market data via a single point of access. The central point of connectivity will be located in Singapore.
The ASEAN trading link will also be connected to the SunGard Global Network, facilitating access to the markets for global brokers and investors.
NYSE Technologies, the commercial technology unit of exchange group NYSE Euronext, was originally expected to provide the technology for the trading link after the firm signed a letter of intent at the tenth ASEAN Exchanges CEO meeting in Manila in February 2010. NYSE Technologies was to have supplied the link, including a standardised entry point for trading and risk management and controls based on its Secure Financial Transaction Infrastructure network and integrated market data feeds from each participating market.
“The ASEAN trading link will facilitate global trades especially for retail investors seeking a bigger exposure in a fast growing ASEAN market,” said Hans B. Sicat, president and CEO of PSE.
“We are pleased with the development of the ASEAN trading link which will enable investors to easily trade across markets in this region, the combined GDP growth of which is expected to average 6% annually across the ASEAN countries over the next five years. We expect this link will drive greater liquidity and investment mobility in ASEAN,” added Magnus Böcker, CEO at SGX.