Laos Securities Exchange goes live

Source: Laos Securities Exchange

On January 11, 2011, the Laos Securities Exchange (LSX) established jointly by the government of Laos and Korea Exchange was opened for trading at 09:00.

The KRX entered the MOU with the Bank of Laos, which is the central bank of the country in September 2007, stating their willingness to collaborate in the establishment of securities exchange in Laos. After 3 years of preparation, the LSX was incorporated on October 10, 2010 and opened for trading in January 2011. The LSX is the first overseas exchange that is modeled after the KRX.

The KRX has invested total of USD 9.8 million, including the cash contribution, provision of IT system, training of specialists and provision of consultation services for formulation of market laws and regulations, and holds 49% of equity of the LSX. The Bank of Laos has invested total of USD 10.2 million, including the cash contribution and provision of land and buildings, and holds 51% of equity of the LSX.

The board of directors of the LSX is composed of 3 members nominated by the Bank of Laos and 3 members nominated by the KRX. The Vice-chairman of LSX who is nominated by the KRX is accountable for the operation of 3 of 5 Departments that carry out the functions essential for the operation of the LSX.

Presently, 2 companies, EDL-Generation (EDL-Gen), which is controlled by the state-owned power company Electricite du Laos, and Banque Pour Le Commerce Exterieur Lao (BCEL), also a state-owned bank, are listed on the LSX. On the opening day, the orders were received from 08:30 and matched at 11:00 using the single price auction method. The order receiving hours of LSX is from 08:30 to 11:30 and the orders are matched at 10:00 and 11:30 using the single price auction method, while disregarding the time priority. In the future, the decision on the introduction of continuous auction method will be made by taking into consideration such factors as the growth of trading volume.

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