Singapore Exchange (SGX) S68 has announced that it has launched a new product, Singapore Depository Receipts (SDRs), under the Thailand-Singapore depository receipts (DR) linkage on May 30.
A memorandum of understanding (MOU) was signed earlier today to mark the partnership between SGX and the Stock Exchange of Thailand (SET) on the DR linkage.
This is the first exchange-level DR cooperation in Asean, demonstrating an important step forward in enhancing regional connectivity. The collaboration leverages the strengths of two well-established exchanges to promote more joint investment and business opportunities for both exchanges and their market participants, according to an SGX release.
SGX CEO Loh Boon Chye says: “Asean is increasingly emerging as an investment thematic among investors. With greater connectivity between Singapore and Thailand, investors can now widen their investment horizons and participate in the growth potential of Asean.”
“I am optimistic the SDR will spur increased participation across borders and create more vibrancy in our capital markets, and for the DR linkage to be the catalyst to spark further collaboration between exchanges in this region,” he adds.
SGX says it is introducing SDR to provide Singapore investors with more efficient access to regional markets. Investors will be able to trade SDR through their local brokers, gaining greater exposure to overseas listed securities, while enjoying the convenience of trading through their usual platform.
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SET president Pakorn Peetathawatchai says: “As investor needs evolve, the linkage facilitates investors’ access from one market directly to another in local currency, bringing more liquidity and price efficiency. This collaboration is part of our commitment to grow connectivity between exchanges in Asean. I am confident that the linkage will be a key platform connecting the world to this region.”
The inaugural SDRs have been issued by Phillip Securities, representing the beneficial ownership interest in the underlying securities of Airports of Thailand (AOT), CP All (CPALL) and PTT Exploration & Production (PTTEP), which are constituents of the benchmark SET50 Index.
Managing director of Phillip Securities Luke Lim says: “At PhillipCapital, we are fuelled by our desire to serve our investors better, and we recognise that today, investors have a wide range of investment choices as well as high expectations on potential trading opportunities. These new SDRs offer Singapore investors new opportunities to invest in the Thai market.”
SDRs will trade on the SGX securities market during local trading hours and in Singdollars.
