Australia’s ASX <ASX.AX> has resumed talks with another party about a possible business combination, the stock exchange operator said on Friday, amid speculation it is looking at merging with an overseas bourse.

Separately, the Singapore Exchange <SGXL.SI>, one of the rumoured potential partners for ASX, called a halt to trading in its shares at around the same time as the ASX announcement. The Singapore exchange operator made no immediate comment.

 

ASX, which operates Asia’s third-largest listed bourse, declined to identify the other party to discussions and also put its shares in trading halt, pending a further announcement.

 

“A party has recently re-activated confidential discussions with ASX concerning a possible business combination,” ASX said in a statement, without elaborating.

 

The ASX is looking at new business opportunities ahead of the end of its monopoly in 2011.

 

Analysts have said potential partners could also include New York Stock Exchange <NYX.N>, Hong Kong stock exchange <0388.HK>, Chicago Mercantile Exchange and Deutsche Borse <DB1Gn.DE>.

 

In March, the Australian government approved in principle a market licence for Europe’s Chi-X Australia Pty Ltd, which is expected to begin operation in 2011.

 

ASX and other Asian exchanges are investing in new technology to counter the threat of “dark pools”, or alternative trading systems, and boosting their capacity to handle large trades while also lowering fees.