Asia’s exchanges have taken another step toward linking up. Four Southeast Asian markets announced Wednesday they plan to develop a trading link that is expected to go live by the end of this year. The exchanges operated by Singapore Exchange Ltd., Bursa Malaysia Bhd., the Philippine Stock Exchange Inc. and the Stock Exchange of Thailand have already completed the design study of the technology framework, the four said in a joint statement.
The link is called the Asean Trading Link, after the Association of Southeast Asian Nations. It aims to electronically interconnect the participating markets, allowing cross-border trading. Some of the technology will be provided by NYSE Euronext, which operates exchanges that cross borders in the U.S. and Europe.
This system shows how competition is revving up as the region’s markets look for more bells and whistles to draw traders and company listings. A similar dynamic is pushing the Singapore Exchange’s bid to acquire Australia’s ASX Ltd. and slowly growing regulatory acceptance of alternative trading areas like dark pools.