The Singapore Exchange (SGX Group) is set to launch a new product, Singapore Depository Receipts (SDR), on 30 May 2023 under the Thailand-Singapore DR Linkage, marking the first exchange-level DR cooperation in ASEAN.
The innovative move, which is expected to strengthen regional connectivity, will also be marked by the signing of a Memorandum of Understanding between the SGX Group and the Stock Exchange of Thailand (SET).
The SDR initiative is aimed at offering Singapore investors more efficient access to regional markets. Investors will be able to trade SDR through local brokers, thus gaining enhanced exposure to overseas listed securities while enjoying the convenience of trading through their usual platforms.
The SDRs will trade on the SGX securities market during local trading hours and in Singapore dollars.
The first batch of SDRs will be issued by Phillip Securities Pte Ltd and will represent 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 SET50 Index.
SGX Group CEO Loh Boon Chye expressed optimism that the SDR initiative will encourage increased cross-border participation and enliven capital markets.
Pakorn Peetathawatchai, President of SET, also hailed the initiative as a crucial milestone for both exchanges. He believes that the linkage will be a crucial platform in connecting the world to the ASEAN region.
Luke Lim, Managing Director at Phillip Securities Pte Ltd, a member of PhillipCapital, mentioned that the new SDRs will provide Singapore investors with fresh investment opportunities in the Thai market, thus aligning with their mission to offer better services to investors.
BusinessNewsAsia