The Singapore Exchange on Thursday introduced dual currency trading, enabling shares of listed companies to be bought and sold in another currency on top of the Singapore dollar, dpa reported.
The exchange said the move gives companies the choice to trade in any two currencies of their choice. The dual currency trading would provide cost-efficiency to investors because they would be able to trade foreign-denominated securities in their local currency, it said.
Investors can now buy or sell stocks in any currency regardless of the currency in which it was first bought or sold. Securities eligible for the facility are known as "fungible" securities.
"Dual currency trading can also apply to other listed securities, such as exchange-traded funds," the exchange's chief executive, Magnus Bocker, said.
"It will benefit investors, who can now choose to trade in their preferred currencies, while companies and issuers can enjoy the flexibility and potential added liquidity of having its securities trading in two currencies," he said.
Hutchison Port Holdings Trust would be the first listed security to launch dual currency units with trading in US dollars and Singapore dollars due to start April 2.