Singapore Exchange, Nasdaq Agree To Streamline Dual Listing Process

Singapore Exchange Ltd’s regulatory subsidiary, Singapore Exchange Regulation (SGX RegCo), has entered an agreement with Nasdaq to enhance cooperation on regulatory matters to help companies access capital in both markets.

In a joint statement, SGX RegCo and Nasdaq said the enhanced cooperation agreement will “facilitate the regulatory exchange of information” on issuers that are dual-listed on both exchanges. This includes a streamlined framework for issuers seeking a secondary listing on SGX.

The agreement also allows secondary listing documents required for SGX offering to be based on information contained in the US listing and subsequent filing documents to the US Securities and Exchange Commission and/or Nasdaq, together with additional disclosure in compliance with Singapore prospectus disclosure requirements.

Tan Boon Gin, CEO of SGX RegCo, said the agreement will enhance the oversight of dual listed issuers and streamline the relevant processes between both exchanges.

“Protecting investors’ interests is important to both SGX and Nasdaq,” Tan said. “Investors with interests in companies that have a profile in both markets will benefit from this regulatory cooperation.”

Nasdaq and SGX first announced a collaborative agreement in 2017 to enhance the channels available for companies to access capital market funding and enhance their corporate profile in both markets.

As part of the agreement back then, Nasdaq and SGX explored the demand among corporates for a concurrent or sequential listing on both exchanges.

“This agreement is reflective of our commitment to streamlining access to capital for issuers and protecting investors,” said Nasdaq Stock Exchange president Nelson Griggs.

The agreement comes at a time when tensions between the US and China have escalated.

Washington has been pressured to crack down on US-listed firms that do not comply with US disclosure and auditing rules since April. Republican Senator Marco Rubio even called on the government to bar US-listed Chinese companies that do not meet US auditing standards from American exchanges.

Nasdaq was reportedly considering new restrictions on IPOs, a move that will make it harder for some Chinese companies to debut on the stock exchange.