LSX tests online trading service
LSX tests online trading service
The Lao Securities Exchange (LSX) expects to launch an online trading service soon after completing installation of the internet-based stock trading facilities.
According to an announcement posted on the stock market website, the Lao-Korean joint venture completed the installation of the ‘Home Trading System' in the middle of last month and is now testing the service to ensure there are no problems once it becomes officially operational.
“The market is offering opportunities for stock traders to test the system,” said a Lane Xang Securities Public Company representative who provides stock broking services, adding that the system is currently only available at the stock market itself.
He said LSX officials need to test the system thoroughly because a minor malfunction could result in serious losses being incurred by investors. They need to be 100 percent certain it is functioning effectively before making it available to the public.
The broker said he thought the stock market would offer online trading in the near future. Once operational the system will allow Lao and foreign investors to buy and sell stock from any location with a reliable internet connection.
Currently, investors who want to trade have to write down buy and sell orders or use a fax or telephone to communicate with brokers. This is inconvenient for investors, especially compared to other world markets, most of which offer online trading services.
According to brokers, once the Lao stock market can provide online trading, they will provide investors with the necessary computer software. This will enable them to post buy and sell orders from home, which will save both time and transport costs.
The stock market is also investigating the possibility of launching continuous stock trading, which will allow investors to buy and sell stock in real time. At present, it only offers six stock matching sessions a day.
The Lao Securities Exchange planned to launch the Home Trading Service last year but had to delay its introduction due to several technical problems.
One of the challenges has been the lack of online trading regulations and a high speed internet signal. The market needs reliable high speed internet to ensure that investors can post buy and sell orders with some degree of certainty.
The Bank of the Lao PDR has proposed a stock exchange law for the National Assembly to consider and approve this week.
The stock market officially opened on October 1, 2010, and stock was offered for trade on January 11, 2011. The government hopes the stock market will help businesses in Laos to mobilise investment capital so they can expand, create jobs and boost incomes.
vientiane times
