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Amex-SGX Joint Venture to be terminated

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Singapore Exchange and NYSE Euronext have announced that they have agreed to terminate the American Stock Exchange-SGX Joint Venture on 30 April 2009 while continuing to collaborate in

Singapore Exchange and NYSE Euronext have announced that they have agreed to terminate the American Stock Exchange-SGX Joint Venture on 30 April 2009 while continuing to collaborate in their respective areas of focus and expertise in the exchange-traded fund space. 

SGX is the holding company of Singapore Exchange Securities Trading, while NYSE Euronext is the holding company of the American Stock Exchange (Amex) following its acquisition of Amex in October 2008.

The JV, owned equally by Singapore Exchange Securities Trading and Amex, was formed in April 2001 to promote the listing and trading of US cross-listed ETFs in the Asian time zone, on Singapore Exchange Securities Trading. 

Based on the relationship between SGX and NYSE Euronext, there is no longer a need for a JV for both exchanges to collaborate to pursue their mutual and respective areas of focus in the ETF space.

With the termination, SGX Xtranet, the JV trading platform, will similarly cease operations on 30 April 2009. The five US cross-listed ETFs under the JV on SGX Xtranet will be transferred to the Singapore Exchange Securities Trading Mainboard after market close that day for continued listing and trading. 

They will be available for trading on the Singapore Exchange Securities Trading Mainboard from 4 May 2009. The five ETFs will remain fungible after the transfer.
 
The ETFs are: Diamonds, SPDRs, iSharesSM S&P500 Index Fund, iSharesSM MSCI Singapore (Free) Index Fund and iSharesSM Dow Jones US Technology Sector Index Fund.

A sixth ETF listed on SGX Xtranet but not part of the JV, the StreetTracks Straits Times Index Fund, will be transferred to the Singapore Exchange Securities Trading Mainboard and available for trading on the same dates as the five ETFs above.

‘SGX is pleased to have worked with AMEX on this JV, to be among the first to introduce the listing and trading of US cross-listed ETFs to the Asian region. SGX now has a total of 30 ETFs, covering most of the major Asian equity markets as well as commodities, including gold.  We look forward to exploring further opportunities to work with NYSE Euronext in the region,’ says Ms Janice Kan, vice president and head, product development of SGX.

‘The ongoing relationship between SGX and NYSE Euronext reflects the global portability of exchange traded investment products,’ says Lisa Dallmer, senior vice president, global indexes and exchange traded products. ‘Given the proper trading model and regulatory recognition, cross-listings for the purpose of trading and asset gathering is a viable business strategy for fund sponsors. We look forward to working with the SGX in the future toward mutually beneficial initiatives and results."
 
SGX does not expect the termination of this JV to have any material impact on its financials.

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