A DEPOSITORY receipt linkage scheme and cross-listings of exchange traded funds could be set up between the Singapore Exchange (SGX) and Indonesia Stock Exchange (IDX) in the next few years.

These will be possible under a recent Memorandum of Understanding (MOU) inked between both exchanges which will allow them to lay the groundwork for greater market connectivity, said SGX Group’s president Michael Syn.

“The MOU is the first step because it states the intention and then resources to be put to work on the regulatory side and the exchange side to work it all out,” said Syn, who also heads SGX’s global markets division.