By Caroline Henshaw
SYDNEY--Australia's dominant stock exchange is looking to boost
its ties with its Singaporean counterpart at a time when markets
are expecting more consolidation in the global exchange
industry.
ASX Ltd. (ASX.AU) said in a statement on Wednesday that from
September the Singapore Exchange Ltd. (S68.SG) will host an ASX hub
in its co-location center to provide direct connectivity to the ASX
24 futures market--and vice versa--in a bid to drive more volumes
from international investors.
Currently around 6% of ASX 24 futures and options volume is
generated from its international hub network but the ASX is hoping
to increase this number.
The move comes more than a year after Australia's government
rejected a $8 billion takeover proposal for ASX from SGX on the
grounds it was against the national interest. It also comes as talk
has surfaced that SGX could be planning a tie-up with the London
Stock Exchange (LSE.LN) in what would be the latest in a wave of
consolidation in the international exchange industry.
"This is a new initiative that is part of our plan to
internationalize the ASX," said Deputy Chief Executive Peter Hiom
in a statement. "It demonstrates that by working together with
other exchanges we can deliver new and greater investment
opportunities to Australian and foreign investors."
Write to Caroline Henshaw at caroline.henshaw@wsj.com
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