Paris and Singapore bourses sign cross-exchange rights

Paris and Singapore bourses sign cross-exchange rights

SINGAPORE (DPA): The newly-formed Singapore Exchange and its Paris counterpart sealed a pact enabling members to secure membership in each other's stock exchanges so they can trade in all electronically listed products on both markets, it was reported on Friday.

The new agreement followed Wednesday's launch of SGX in Singapore, the Asia-Pacific region's first integrated demutualized securities and derivatives exchange accompanied by new market-opening measures.

SGX was formed from the merger of the Stock Exchange of Singapore and Simex.

Under a memorandum of understanding signed between French and Singapore financial regulatory authorities, The Straits Times said both sides agreed to provide mutual assistance and exchange information necessary for investigations into offenses or fraudulent practices.

Both SGX and the Paris bourse are members of the Globex Alliance, a worldwide network of derivatives markets which also includes the Chicago Mercantile Exchange, the Montreal Exchange and Brazil's Bolsa de Mercadorias and Futuros.

SGX president Ang Swee Tian said the agreement would provide a "broader range of international products to trade and offer customers."

The extension of similar cross-exchange rights to all Globex Alliance exchanges would widen their global reach and deepen market liquidity, he said.

The Paris bourse, continental Europe's largest stock market, can offer companies from outside the euro zone the best point of access to all European investors, said Marc Vienot, president of Paris Europlace, an association representing French financial markets.

The banding together of the bourse with seven other European stock markets by next November to offer similar trading hours and a common market model means Paris can also offer a single access to all these markets, Vienot said.

The Paris bourse has been operating as Europe's second integrated exchange after Frankfurt since May.