Joint indexes planned for Asian exchanges

Stock exchanges in Bangkok, Jakarta, Kuala Lumpur, Manila, and Singapore will collaborate to set up joint indexes for derivatives and fund managers.

The five exchanges have signed a memorandum of understanding with FTSE Group on the creation of the planned Association of South East Asian Nations (Asean) equity indexes.

Under the memorandum, FTSE will create indexes that could be used for benchmarking institutional and retail funds, exchange-traded funds and derivatives contracts.

The exchanges said in a joint statement: "This is the first collaborative effort among the five exchanges under the Asean umbrella and we see this as paving the way for future collaborations between the exchanges. The development of indexes based on international standards and recognised methodology by FTSE will facilitate the international visibility of the Asean markets, and help promote the Asean economies to both regional and global investors by branding Asean as an asset class."

However, no launch date has been announced for the indexes.