KUALA LUMPUR: The Asean Trading Link is facing muted
interest from Malaysian brokers because most brokerages here already have
trading tie-ups with counterparts in Singapore, the Singapore Business Times
reported.
The report quoted the managing
director of N2N Connect Bhd Andrew Tiang as saying that there were hindrances
as Malaysian brokers fret over regulatory issues linked to the cross-border
trades.
N2N Connect is an IT
infrastructure hardware services provider to broking arms in an event the
latter needs an IT upgrade for the purpose of the Asean Trading Link.
Tiang, however, also said that
the intention of Asean exchanges to come together to promote Asean was a good
initiative although there were now concerns that regulators would review more
carefully the way brokers use the Asean trading link to handle risks.
He said there was less clarity on
which brokers would be responsible for risk management; compared with the usual
broker-to-broker agreements, which have local brokers taking non-domestic
risks.
However, the report also stated
that brokers had noted that the Asean Trading Linke would provide the greatest
benefit to brokers that did not have trading offices in other countries in the
region.
Tiang also said that most
Malaysian retail investors were unfamiliar with other Asean markets for the
time being, and would usually prefer Singapore listings.
Bursa Malaysia's chief executive
officer Datuk Tajuddin Atan had recently told the press that the the Asean Trading
Link was expected to be launched this year.
The Asean Trading Link had
initially been scheduled to be launched by June of this year but had been
delayed due to slight regulatory issues, Tajuddin earlier said.
Earlier reports had quoted him as
saying that the Asean Trading Link involved many parties and it was a
“challenge to bring everybody on board.”
Tajuddin also said that there was
no resistance to the idea for the establishment of the Asean Trading Link.
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