CSX’s initiatives to boost trading likely to be approved soon

The CSX-proposed initiatives to boost trading on the bourse—which include block trading, termed as negotiated trading method (NTM), the introduction of market orders, and increasing the daily price limit from 5% to 10%—are expected to be approved by the Securities and Exchange Commission of Cambodia (SECC) sometime soon, according to Lamun Soleil, director of market operations at the CSX. Soleil said the CSX had submitted the proposal to the SECC several months ago. The proposed NTM allows a pair of big investors, with orders of over 50,000 shares or $50,000, to easily trade in a secure manner outside the order book. Solei said the NTM has two main purposes, besides providing confidentiality to large investors on their orders. The first is to avoid the impact of big trades on market prices that could lead to market instability, while the second purpose is to help secure investors’ trades in a single large transaction—one that is not partially executed with numerous small orders. The CSX also initiated a mechanism where investors could make market orders through a broker to buy or sell an investment immediately at the best available current price. At the same time, the bourse operator proposed increasing the daily price limit of shares to 10% from the current 5%, to provide more leeway and confidence to investors in their day-to-day trading. (Source: Khmer Times)