Trading Rule - Highlight on Market Operation and Securities Trading

Abbreviations:

SECC: Securities and Exchange Commission of Cambodia
CSX: Cambodia Securities Exchange
ACS: ACLEDA Securities Plc.

Summary of Cambodia Securities Exchange (CSX) Trading Rules

Trading Session

Monday to Friday (Except public holidays)
Trading Session starts from 8:00AM to 3:00PM as detail below:
- Trading from 8:00AM – 9:00AM is using Single price auction method that execution will be at 9:00AM
- Trading from 9:00AM – 2:50PM is using Multiple price auction method that execution will be match immediately when the highest bid price could matches the lowest offer price (Continuous Auction Session)
- Trading from 2:50PM – 3:00PM is using Single price auction method that execution will be at 3:00PM
Currency in use: Khmer Riel (KHR)

Equity Securities Trading

Single Price Auction and Multiple Price Auction as method for matching
Trading volume starts from 1(one) share
Settlement day: 2(two) working days after the trading day. (Ex. Trading on Monday, the securities and cash are settled on Wednesday morning)

Trading Before settlement

Trading before settlement could able investors to use:

Securities from buying order of trading execution to sell out immediately
Cash from selling order of trading execution to buy more securities immediately

Example 1: Investor A sold XYZ Stock (1,000 Share) successful and settlement will be next two day (T+2) but investor could use cash from sold to buy more securities without waiting two days more.

Example 2: Investor B bought ABC Stock (2,000 Share) successful and settlement will be next two day (T+2) but investor could use securities from bought to sell securities without waiting two days more.

Matching Priority (in Secondary Market)

Principle of Auction

Trading by single price auction

Priority of Bid/Offer Orders
1. Price
  - The lower offers have priority over higher offers
  - The higher bids have priority over lower bids
2. Time
  - In case of the same price orders, the orders received earlier have priority over the orders received later
3. Volume
  - Priority is given to the higher volume order if orders are made similar in time and price
4. Simultaneous order
  - Order from customer account shall have priority over the order from Securities firm’s own account
An order shall be valid from the time it is received by the CSX trading system to the time it is executed during the trading session of the same day

Example:

Trading by Multiple price auction

When high price of buying order shall executed low price of selling order so which order that place in system first will determine as match price.

Example 1:

Example 2:

Price Change Limit

The first trading price of initial public offering (IPO) shall be within 90% to 150% of IPO price (determined in the disclosure documents registered at the SECC)
±10% of the daily base price, in case where the base price is less than KHR 200 the daily price change shall be KHR 10
Base price should be the previous day’s closing price
In case there is a corporate action such as capital increase/decrease, stock dividend, ex-right, split off, etc., the base price will be automatically calculated by the CSX’s system using certain formula
The prices calculated, when they are less than the price unit (tick size), should be rounded up to the price unit

Trading Unit and Tick Size

The minimum trading unit starts from one (1) share. Minimum price movements are as followings (all amounts are in KHR).

Price (P)	Tick Size	Example of Right Quotes	Example of Wrong Quotes
P<4,000	10	2,010; 3,500; 3,650; 3,990	2,015; 3,522; 3,655
4,000≤P≤20,000	20	5,220; 17,500; 19,740	10,210; 17,525; 19,950
20,000≤P≤40,000	50	30,050; 35,200	30,430; 784,258
40,000≤P≤100,000	100	50,100; 70,200	50,150; 70,280
100,000≤P≤200,000	200	110,200; 155,600	110,300; 155,250
200,000≤P≤400,000	500	300,500; 335,000	300,700; 335,800
400,000≤P	1,000	401,000; 505,000	401,500; 505,850

Date of Action for Ex-entitlement

The date of action for ex-dividends or ex-rights shall be one (1) trading day prior to the record date on which a person who exercised the right is determined.

Settlement

Calculating the quantity of securities and the amount of cash to be settled by netting the securities and cash of each member (securities firm) to be settled in the same day.