SINGAPORE EXCHANGE SEEKING NASDAQ/LONDON LINK
The Stock Exchange of Singapore (SES)
plans to introduce electronic trading of shares listed on the
National Association of Securities Dealers Automated Quotation
System (NASDAQ) in the U.S. And on London's Stock Exchange
Automated Quotation System, banking sources said.
    The SES is discussing the idea with the London and New York
authorities. Gordon Macklin, president of the National
Association of Securities Dealers in Washington, said he was
very optimistic about an early agreement, possibly by the end
of this month.
    Monetary Authority of Singapore (MAS) sources told Reuters
they supported the proposed linking of computer trading systems
on the three exchanges, and the banking sources said local
financial support for the plan existed.
    Macklin said if an agreement were reached it would move the
three exchanges towards 24-hour trading, with Singapore filling
a gap when no trading takes place.
    A small group of selected stocks would be used at the start
of three-centre trading to determine investor interest.
    The Singapore, London and New York authorities have agreed
in principle on how the three exchanges would trade and
transfer information among the different time zones, but some
details still have to be worked out, a senior Singapore bank
director said.
    Questions remain concerning investor willingness to deploy
sufficient capital in Singapore to ensure adequate market
liquidity and communication links to the other three centres.
    But if agreement is reached, Singapore will have a head
start over the other Asian financial centres in Hong Kong,
Toyko and Australia, he said.
    On February 18 the SES created the Stock Exchange of
Singapore Dealing and Automated Quotation System (SESDAQ),
modelled on NASDAQ.
    At present SESDAQ is trading the shares of only one
company, the government-owned Singapore National Printers Ltd
(SNP), but its turnover has been fairly active, and other small
firms have said they plan to seek listings soon.
    Market sources expect the next few companies listed will
also be government-owned entities, which would have no problem
meeting the listing conditions. Approval for a listing of
Trans-Island Bus Service Pte Ltd is expected soon, they said.
    SNP, previously wholly-owned by the government's Temasek
Holdings (Pte) Ltd, issued seven mln 50-cent shares at one dlr
each last month in a public offering oversubscribed 119 times.
    In SESDAQ trading, SNP shares have advanced from an initial
1.87 dlrs to a Friday close of 2.32 after a 2.80 high. So far
more than 900,000 shares have traded.
 REUTER
