SET, Taiwan agree to push dual listings

Futures exchanges to share information

KRISSANA PARNSOONTHORN

The Stock Exchange of Thailand plans to review its memorandum of understanding with the Taiwan Stock Exchange in October by adding new language to encourage dual listings.

Patareeya Benjapolchai, the SET president, said yesterday that the two exchanges would first promote exchange-traded funds for dual listing. The Taiwan market has three ETFs already, while the first ETF on the Thai bourse will be launched in the third quarter of this year.

"After the ETFs, we will then encourage Taiwanese listed firms to raise funds and dual-list on the SET. Once the products from Taiwan are listed on the Thai market, we will have new quality supply and a rise in market capitalisation," she said.

Mrs Patareeya declined to estimate the impact on the Thai market from the programme. She said the SET would also consult with the Bank of Thailand about the clearing and settlement issue for the dual listing of Taiwanese firms.

Several stock markets around the world have sought to cooperate to boost their competitiveness. The SET has been concerned about this issue for a long time, she said.

Yesterday, the Thailand Futures Exchange (TFEX) also clinched an agreement with the Taiwan Futures Exchange (Taifex) to promote their relationship and together develop the business in the near future.

The two futures exchanges will trade useful information, which will lead to a proper way to develop mutual benefits in the future, said Kesara Manchusree, managing director of TFEX.

"We will invite representatives from Taifex to provide us with information and experiences about the success of option product development over the next one or two months," she said.

Taifex, which is ranked number 18 among futures markets around the world, is keen on developing index options.

It has expanded its investor base to tap overseas investors, especially those in the US.

Bangkok Post

Last Updated : Tuesday April 10, 2007