Myanmar Inaugural Stock Exchange, YSX, Supports Live Trading

Myanmar has joined the global equities and capital markets community with the launch of its first ever Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term, the Yangon Stock Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (YSX), which is backed by a Japanese partnership, according to a JPX statement.

The YSX has begun live trading, characterized by its inaugural listing, the First Myanmar Investment Co., Ltd., focused on the real estate business in Myanmar. The unveiling of a stock exchange constitutes a huge leap for the country that recent years had yielded a nascent investment base, troubled by domestic instability and rampant corruption.

One of the impetuses behind the launch of the YSX was its partnership with the Japan Exchange Group (JPX). The exchange itself was established by the JPX, Daiwa Institute of Research Ltd., and Myanmar Economic Bank, a state-owned bank under the Ministry of Finance of the Republic of the Union of Myanmar.

The triumvirate of entities all backed the establishment of the YSX, representing support from both the private and public sector. All of the aforementioned entities had entered into a joint venture agreement as far back as December 23, 2014, with the interval between then and now being reserved for preparations towards YSX’s business operations, culminating in the beginning of stock trading today on the exchange.

Despite the beginning of live trading on YSX, there remain several challenges for the upstart exchange, including the valuation of companies and its handling of other listings such as initial public offerings, etc. That the country has never had a domestic exchange will also present several barriers in its initial operations, though JPX and Daiwa Securities Group will continue to work with YSX to increase the number of listed companies in the hope of fueling the development of Myanmar’s capital market.