Singapore Exchange Group (SGX Group) and the Indonesia Stock Exchange (IDX) have signed a memorandum of understanding (MOU) to explore collaboration opportunities, says SGX on Jan 29.
According to the group, the Asean region presents a “compelling growth story” global investors. Under the MOU, both exchanges will work closer together to foster greater access and connectivity between both markets and encouraging cross-border investments.
Both exchanges also seek to explore frameworks and the issuance of depository receipts with Indonesia and Singapore underlying; exchange-traded funds (ETFs) including cross-listing and a master-feeder structure; the creation and development of indices; and the exploration of dual listings between Indonesia and Singapore.
“Enhancing connectivity within Asean is paramount to unlocking the full potential of our region’s capital markets and we are excited to be fostering greater collaboration with IDX. Together, we aim to create a more vibrant and interconnected ecosystem, attracting international investors with the richness and dynamism of Asean’s investment landscape,” says Loh Boon Chye, CEO of SGX Group.
“Through this MoU, IDX and SGX Group agree to conduct discussions and negotiations in relation to the collaboration. We are excited to explore opportunities relating to the joint development of exchange products including ETFs and indices. We believe that this collaboration may contribute to the growth of both exchanges and capital market in the region,” adds Iman Rachman, president director of the IDX.
Shares in SGX closed 1 cent higher or 0.1% up at $9.66 on Jan 26.
