PSE inks alliance with Vietnamese bourse

January 17, 2010 11:44 am 

MANILA, Jan. 17 — The Philippine Stock Exchange (PSE) has inked a memorandum of understanding with the Ho Chi Minh Stock Exchange (HOSE) meant to enhance links with its Southeast Asian counterparts.

The MOU was signed last Friday in Ho Chi Minh City by Atty. Francis Lim and Dr. Tan Dac Singh, president and chief executive officer of PSE and HOSE, respectively. The chairmen of the two stock exchanges, Hans B. Sicat and Nguyen Doan Hung, witnessed the signing of the MOU.

“We have been watching the significant developments in Vietnam over the past few years and the role that HOSE has been playing. Despite being a relatively new stock market in Asia, the tremendous growth of HOSE can only be admired. HOSE has managed to capture the interest of investors locally and globally," Lim added.

"As such, it is expected to become one of the more viable markets in Asia. The MOU signifies an important step in enhancing financial services cooperation between the HOSE and PSE. This should enable both exchanges to capture emerging opportunities in Asia," Sicat pointed out.

Under the MOU, both bourses have agreed to mutually collaborate and communicate information and experiences to facilitate the development and efficient operations of their securities markets.

“This MOU responds to the need for stronger global ties at a time of fragile global economies and vulnerable financial markets. It also provides a new opportunity for PSE and HOSE to promote international cooperation to enhance both our securities markets," Lim stressed.

He said they found more reasons to cement their partnership after HOSE has recently joined ASEAN bourses to establish cross border trading, a project which the PSE is deeply involved with.

"The entry of HOSE to the ASEAN Exchanges alliance is a big step towards achieving capital market development in the ASEAN. With the recent accession of HOSE, which is one of the fastest growing markets in Asia, the benefits that each exchange is hoping to reap from the ASEAN trading linkage have been truly enhanced,” he added.

To further enhance its visibility in the region, the PSE inked an MOU last year to create a trading linkage among ASEAN countries that will allow investors to buy or sell ASEAN-listed securities through their local brokers.

Among ASEAN bourses that teamed up with the PSE to set-up the electronic linkage are Bursa Malaysia (BM), Indonesia Stock Exchange (IDX), Singapore Exchange (SGX), and the Stock Exchange of Thailand (SET).

HOSE was the latest addition to the regional pact which aims to explore cross-border trading amongst ASEAN capital markets.

This ASEAN electronic link is expected to be launched this year, beginning with Bursa Malaysia and the Stock Exchange of Thailand, followed by the Singapore Exchange and the PSE.

The PSE also recently signed an MOU with the New York Stock Exchange (NYSE) Euronext to establish a strategic alliance to jointly develop new exchange-traded products, explore new opportunities in trading system architecture and technology and enhance market participant connectivity and data management. (PNA)

LDV/PFN

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