Published On: Thu, Feb 3rd, 2011

ASEAN Exchanges Complete Technology Design Study of Trading Link

Four ASEAN Exchanges, namely Bursa Malaysia (BM), the PhilippineStock Exchange, Inc. (PSE), Singapore Exchange (SGX) and the Stock Exchange of Thailand (SET) working together with NYSE Technologies, today said the design study of the technology framework for the ASEAN Trading Link has been completed.

Shortlisted vendors who are able to provide the infrastructure have been invited to tender.

The ASEAN Trading Link aims to electronically interconnect the participating markets and facilitate cross border order trading seamlessly. Depending on the selected vendor, it is expected that the link will go live toward the end of 2011.

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  1. Lyle Williams says:

    Steve, as usual I wonder if the Exchanges have even thought about how these trades will clear and settle….

  2. Le Michael Song says:

    I’m also interested in the issue of clearing and settlement. Is AsiaClear involved with this?

  3. Lyle Williams says:

    AsiaClear is a name used by the SGX for their OTC traded derivatives platform. It has nothing to do with the clearing and settlement in the ASEAN region

  4. Steve Cook says:

    I looked at this briefly last year. The ‘trading link’ is actually just a FIX order routing network. As a client, you’d still need individual accounts at brokers in every country. So as far as I can tell it’s completely pointless.

  5. Lyle Williams says:

    Well they have gone one step further and appointed a Technology provider – it was such a momentous occasion that it still hasn’t made the asean website

    oh the Technology provider…SunGard who will supply the infrastructure for the network based on its Valdi trading solution suite. Wonder what happened to NYSE Technologies who signed a LOI with asean in 2010?

    And still no back office solution…..

  6. In Feb 2010 we were commissioned by four of the ASEAN exchanges to design an build the linkage.

    We delivered (and they accepted) the detailed design in Sept 2010. At that point they decided that, based on the structure and investment required, they wanted to explore other deployment options.

    We are not working on the deployment but we continue to work individually with some of the exchanges on other projects.

    I agree on the need for a post trade component to any regional linkage. I think AsiaClear is an interesting initiative but I have not seen it used in this context.

  7. John Fildes says:

    Agree. I don’t see this going very far without a central counterparty for clearing that then in turn deals with local depositories. The proposed model still requires a participant to use a local Clearing House participant (i.e. broker) to clear and settle so unlikely there will be any savings vs using DMA via the same broker, and potentially more latency.

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