SINGAPORE, Sept. 3 (Xinhua) -- The stock exchanges of Singapore and Malaysia will be reconnected from Sept. 18 in the first stage of the ASEAN (Association of Southeast Asian Nations) Trading Link, the ASEAN exchanges said on Monday.
The connection between the Singapore Exchange and the Bursa Malaysia will allow investors from both countries easy access to the stock market of the other side.
The two bourses will be the first to be connected through the ASEAN Trading Link, followed by Stock Exchange of Thailand.
Currently, investors in Singapore who want to trade shares in Malaysia will have to place their orders through their local brokers.
Previously, both exchanges were connected through the Central Limit Order Book, which was disbanded during the Asian financial crisis.
The ASEAN Trading Link is a collaboration among seven Southeast Asian exchanges to promote cross-border trading, with the ASEAN exchanges to be connected electronically through an order routing system.
Singapore Exchange is introducing new rules on the participation criteria and compliance requirements for its members in relation to the ASEAN Trading Link. The new rules will take effect on Sept. 18.
It is estimated that the bourses of Singapore, Malaysia and Thailand represent approximately two thirds of the 2.1 trillion U. S. dollars market capitalization of the seven members of the ASEAN exchanges.