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14 May 2002
Link between Australian and Singapore Stock Exchanges
The Australian Stock Exchange Ltd and the Singapore Exchange Ltd have established an international trading, settlement and custody system designed to deepen the pool of investors that they each attract.
Under the trading link investors in one market can purchase securities listed on the other market through their own broker and in their own currency. On settlement, the securities are held on behalf of the investor in an omnibus custody account with the exchange's nominated custodian.
Fifty securities quoted on each exchange are available for trading in this
manner. It is anticipated that more will be added as market interest develops.
Regulators of Australian Clearing and Settlement Facilities to Cooperate
The Australian Securities and Investments Commission (ASIC) and the Reserve Bank of Australia (RBA) have signed a memorandum of understanding in regard to their respective responsibilities in relation to licensed clearing and settlement facilities for the Australian financial markets.
Under the new regulatory regime for such facilities established by the Financial Services Reform Act (see Financial Services Law is Reformed), ASIC is responsible for monitoring compliance with many of the obligations imposed on those facilities and has powers to enforce compliance. The RBA is responsible for monitoring compliance with financial stability standards and ensuring that such facilities do all things reasonably practicable to reduce systemic risk.
The memorandum sets out a framework for cooperation between ASIC and the RBA, including information sharing and notification, to prevent unnecessary duplication of effort and to minimize the regulatory burden on licensed facilities.
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