THE idea of one security traded on two neighbouring markets is a simple and effective one.
Issuers gain from a larger investor base while investors benefit from better trading liquidity.
In fact, for some 172,000 investors who traded Malaysian shares on the SGX's Clob International market in Singapore, the concept of one security trading on two exchanges has a eerily familiar ring. But in September 1998, Malaysia put a stop to this. Although Singapore's co-trading arrangement with Sydney is slightly different from the Clob operations, it is still the concept of one security trading on two markets. In today's operating environment, the top companies listed on any exchange are likely to have global appeal. And electronic trading makes it possible to buy and sell a stock from a dealing room anywhere in the world.