Stock Trading Procedure

Basic Trading Procedure

• First open a trading account at any securities companies which have membership of the Lao Securities Exchange (LSX).
• Foreign investors must have a Foreign Investor Registration Number issued by the LSX, which they can then authorize a securities company or custodian bank to act on behalf.

• In order to trade in LSX, both buyers shall have good faith deposit in cash (100%) in bank account and sellers shall have stock (100%) in stock trading account.
• The investors shall transfer money from bank accounts to stock trading accounts as an advance deposit, which includes purchase amount and fee.
• Investors can use these 3 methods for placing their orders of buying and selling stocks:

• -  Place orders by written application form:

  The investors can place order through a written application form at their securities company.

  -  Place orders through telephone, and E-mail.

  The Investors can place orders through telephone and email from any location with telephone and internet access, without the need to visit a securities company.

  -  Place orders by using Home Trading System (HTS)

  The investors can place order through Home Trading System (HTS), which can simply download from securities company’s websites to install on personal computer (PC) and laptop. Investors shall request user ID, then can easily trade from where internet access.

Cancel Order

• Investors may cancel their orders for buying or selling stocks if such orders are not yet executed.
• Investors can send cancelation of orders through their securities company (brokers), by telephone, emails and HTS.

Trade Executions

• LSX Trading System executes the quotations according to the execution principles.

Trade Result

• The securities company shall notify investors right away after their orders are executed via communication method as means agreed.

  Remark:

  For more information contact your securities company.

Settlement

• LSX shall perform confirmation netting of settlement amounts and stocks.

Deposit

• LSX (Lao PDR Securities Depository Center) deposit and transfer of securities traded in the LSX.

Flow of Trading at LSX Stock Markets