Vietnam and Singapore exchanges agree to study depositary receipts

The Vietnam Exchange (VNX) and Singapore Exchange (SGX) have signed a memorandum of understanding to advance research and cooperation on depositary receipts (DRs). The agreement aims to support closer links between their capital markets and was signed at talks involving the State Securities Commission of Vietnam (SSC) and the Monetary Authority of Singapore (MAS).

SSC Chairwoman Vu Thi Chan Phuong said DRs could offer Vietnamese companies more ways to raise funds internationally, widen the investor base and encourage capital flows in both directions. The SSC said cooperation could gradually help build a network of exchanges, companies and financial intermediaries to support DR issuance and listing.

Phuong asked MAS to share information about Singapore’s rules, market arrangements and requirements to help Vietnamese businesses access its market. She also said FTSE Russell was working with MAS on index products in Singapore and expressed an expectation that Vietnamese securities firms could take part as market makers.

Lim Tuang Lee, assistant managing director of MAS’s Capital Markets Group, said effective DR operations would require coordination among depositary banks, custodians and institutions handling clearing and settlement. He also emphasised that investors and other participants would need full, transparent information about how DRs work and are used.

The regulators also discussed digital-asset oversight. The SSC sought exchanges on legal frameworks, exchange operations and supervision, including Singapore’s experience in countering money laundering and terrorism financing. Lim said MAS was ready to share expertise and information with the SSC.