THE Philippine Stock Exchange Inc.  (PSE) inked a partnership with the Korea Exchange Inc. (KRX) last week in line with its plan to strengthen ties with bourses in the Association of Southeast Asian Nations (Asean)region.

As part of the agreement, the PSE and KRX will commit to improve their information-technology infrastructure to further develop their respective financial markets.

This will also pave the way for mutually beneficial strategic alliances, such as information and experience sharing in product development (such as derivatives and other exchange-traded products).

The PSE had signed a similar deal with Vietnam’s Ho Chi Minh Stock Exchange last month, which is considered one of the fastest-growing markets in the region.

The exchange had already inked an agreement last year to create a trading linkage among Asean countries that will allow investors to buy or sell Asean-listed securities through their local brokers.

Among Asean bourses that teamed up with the PSE to set up the electronic linkage are Bursa Malaysia, Indonesia Stock Exchange, Singapore Exchange and the Stock Exchange of Thailand. KRX and the Ho Chi Minh exchange were the latest addition to the regional pact which aims to explore cross-border trading among Asean capital markets.

This Asean electronic link is expected to be launched this year, beginning with Bursa Malaysia and the Stock Exchange of Thailand, followed by the Singapore Exchange and the PSE.

The PSE also recently signed a memorandum of understanding with the New York Stock Exchange Euronext to establish a strategic alliance to jointly develop new exchange-traded products, explore new opportunities in trading system architecture and technology and enhance market-participant connectivity and data management.  Miguel R. Camus