The Cambodia Securities Exchange (CSX) presented two new trading tools to the public Thursday to speed up transactions and entice greater interest in the country’s lackluster bourse.
From Monday, stock traders will be able to use continuous trading and trading before settlement services.
Continuous trading will allow investors to perform trades at any time during the two-hour trading session—between 9 a.m. and 11 a.m.—and respond to real-time stock price changes rather than wait for the allotted execution window, which currently occurs every half hour.
The trading before settlement service will let traders buy and sell securities and instantly move funds, rather than waiting two days after trading for the transactions to be processed.
CSX spokesman Lamun Soleil said now that the securities exchange has been operational for four years, traders in the country are ready for a more sophisticated trading system that requires immediate responses to stock prices.
“It’s difficult for market beginners to be certain about price fluctuations…but now is the right time,” Mr. Soleil said.
“We will give more purchasing and selling power to investors. They will be able to use the cash not yet received from their previous transaction to do another transaction,” he said.
Lee Ihnsoo, CSX chief operating officer, said the new methods would funnel more money into the stock market.
“We believe this change will reduce investor risk and get them to participate more…and will benefit them by creating more liquidity in the market,” he said.
Svay Hay, CEO of Acleda Securities, said the tools should see a sharp increase in demand for brokerage services and come at the opportune moment, as the bourse looks set to expand.
“The volume of trade will double as a result of presettlement trading,” he predicted.
But despite the new tools, the CSX still has only two listed companies—the Phnom Penh Water Supply Authority and Grand Twins garment factory—neither of which has performed well since going public.
Mr. Ihnsoo said four more companies are expected to go public this year.
The TY Fashion garment company is most likely to list next, after being granted preliminary approval by the CSX, according to Mr. Soleil, who estimated the firm would go public within six months.
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