The trading system to be used by LFX is web based via the @LFX System. The Indication of Interest (IoI) Electronic Bulletin Board on the @LFX list all financial instruments available for trading. Access to this board will be made available to licensed trading agents. The trading agents will post their bid and offer to buy/sell on this board. The trading agents involved may negotiate their own bid/offer prices. Each counter party to the trade will then submit its trade to LFX for confirmation and clearing.

All trades done are subject to the T+3 delivery and settlement period. The size of each trade is subject to a minimum size of 100 units per contract.

Yes, trading will be subjected to the type of financial instrument listed on LFX.

• Financial or debt instruments are not expected to be actively traded.
• Equity securities are more likely to be traded. q Islamic instruments, which are not widely available in other jurisdictions, may also be traded.
• LFX would cater for a broad spectrum of products, depending upon the needs and demands of the market. At this point in time, it may not be possible to estimate trading volume, as trading is dependent upon a number of factors and the instruments listed.
  
  

However, it is envisaged that the situation will change over time. LOFSA at present is actively promoting to increase activity in Labuan. With the establishment of LFX, further attention and focus will be placed on Labuan.

This may be considered in the future.

LFX caters for the listing and trading of multi-currency financial instruments. This would indicate that trading can be done in any currencies. Settlement will be done by the appointed Settlement and Depository agent, Citibank Worldwide Securities Services or Deutsche Bank (Malaysia) Berhad, in the currency of the instruments traded.

There is no guarantee that trading via the web is 100% secure. Nevertheless, LFX has taken all necessary precautions during its system design and implementation to minimise the risks associated with web trading. No expenses have been spared on this matter as this represents the future of LFX. As an added precautionary measure, LFX has also set up a virtual private network between the licensed listing sponsors, trading agents and the Exchange.