SGX and SET launch SDRs under the Thailand-Singapore connection

Singapore Exchange (SGX Group) has announced which will launch a new product, Singapore Depository Receipts (SDRs), under the Thailand-Singapore DR Connection on May 30, 2023.

A Memorandum of Understanding (MOU) will also be signed to mark the partnership between SGX Group and the Stock Exchange of Thailand (SET) in the DR Connection.

This marks the first cross-border DR cooperation within ASEAN, representing a significant step towards strengthening regional connectivity.

This collaboration leverages the strengths of two established exchanges to promote further joint investment and business opportunities for both exchanges and their market participants.

SGX Group introduces SDRs to provide Singaporean investors with more efficient access to regional markets. Investors can trade SDRs through their local brokers, gaining greater exposure to foreign-listed securities and enjoying greater trading convenience through their usual platform.

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These SDRs will be traded on the SGX stock exchange during local trading hours and in Singapore dollars.

Loh Boon Chye, CEO of SGX Group, stated: “It has been an exciting journey working with SET to materialize our SDRs within the RD Connection. ASEAN is increasingly emerging as an investment topic among investors.”

“With increased connectivity between Singapore and Thailand, investors can now broaden their investment horizons and participate in ASEAN’s growth potential. I am optimistic that the SDRs will stimulate greater cross-border participation and create more vitality in our capital markets, and that the DR Connection will be the catalyst to spark greater collaboration between exchanges in this region.”

For his part, Pakorn Peetathawatchai, president of SET, stated that “the launch of the DR Thailand-Singapore Connection marks an important milestone for both exchanges. As investor needs evolve, the link makes it easier for investors from one market to directly access another in local currency, bringing greater liquidity and pricing efficiency.”

He added that “this collaboration is part of our commitment to increase connectivity between ASEAN exchanges. I am confident that the link will be a key platform connecting the world with this region.”