Taiwan and SGX sign cross-border trading deal

Co-operation between Singapore and Taiwan will eventually lead to cross-exchange trading in the two countries.

The Taiwan and Singapore exchanges have created a strategic partnership which will see TWSE become a remote trading member of Singapore.

The deal between Taiwan Stock Exchange (TWSE) and Singapore Exchange (SGX) is the first step in what both groups say will become a wider partnership over time.

Initially, TWSE member brokers will be able to directly trade SGX-listed securities via TWSE’s membership, making international trades more efficient and cost effective for Taiwanese investors.

The two exchanges will also engage in an education and awareness program to promote their activities to both institutional and retail investors and help them understand the long-term investment opportunities in Singapore equities.

Loh Boon Chye, chief executive officer of SGX, said: “We warmly welcome Global Link, TWSE’s subsidiary as a remote trading member and are pleased to deliver greater convenience and choice to international investors accessing the Singapore market. By expanding our connections internationally, Singapore’s equities market will continue to deepen, with listed companies able to target an ever-increasing investor pool.”

A link to enable Singapore investors to trade Taiwanese securities is expected to be established at some point in the future, though no dates were forthcoming.