Australian finance minister Wayne Swan on Monday belied speculations his office would reject the proposed A$8.4 billion (S$10.6 billion) merger between the Australian and Singaporean bourses.

The merger between the ASX and SGX has been announced last October which would eventually create one of the world's largest and most diversified financial trading hubs. However, some political figures in Australia have expressed discomfort over the plan and raised questions on foreign ownership as well as Singapore's democracy and rights record.

In February, the two exchanges released a revised proposal creating equal number of directors from each country to address the issue of foreign ownership. The two bourses also promised to retain operation, assets and key staff in Australia. Investing in new products is also included in the planned merger's direction.

However, the Australian Financial review on Monday reported that the deal is expected to be trashed by the Australian parliament after Australia's Foreign Investment Review Board assessed the documents.

Swan quickly dismissed the reports and described them as mere speculations.

He told ABD radio, "I have no idea where those reports have come from. I will take my decision on the evidence before me, based not only on the recommendation by the Foreign Investment Review Board but a thorough consideration of all the issues in good time...

"My decision will be taken in the national interest and it will have nothing to do with political considerations whatsoever."

Australia's securities, foreign investment and competition watchdogs, as well as the central bank, must review the proposal first and then submit it to Swan for his approval.