Trading process starts with investors who wish to buy or sell securities. They cannot do that directly on the stock exchange, so they need to contact one of the members of Sarajevo Stock Exchange.

In order to be an intermediary in the trading process, brokerage house must obtain a license from the Securities Comission and be a member of SASE and Securities Registry of FB&H.

There are many registered brokerage companies in the market, so investor needs to choose between them. The main criteria should be pricing and the level of services.

The complete list of SASE members authorized for trading

When you decide your representative on the market, you need to visit that brokerage house and sign the common contract of intermediary. This contract is signed only the first time you visit.

Brokerage company will assign you the unique identification code, which you should not communicate to anyone but your broker.

After that you may give your buy/sell orders. When you give the order to the broker you must decide on following:

• security: which security you want to buy/sell
• price: limited order (you decide on the price) or market order in which you buy/sell to the price of the market
• duration: the date of the validity of your order (open order, valid till date, daily order) volume of securities.

If you intend to give a buy order, you will have to make an advance payment to a special account. If your intention is to sell securities, brokerage house is entitled to ask for a confirmation of your Registry's account position.

After you give your order, brokerage house will issue a confirmation that it has recieved it. After that, broker will enter your order into Exchange trading system – BTS. After your order has been executed, broker will notify you and disclose the price of the transaction. It is important to note that the price you had achieved cannot be worse than the one you have named in your order.

If you were a buyer in a transaction, your securities will be placed in your account at Securities Registry. Soon after the change in the account, Registry will inform you of the updated number of the securities.

In the case you were selling securities, money will be on your account 4-5 days after the transaction was concluded. Clearing and settlement period is T+2, but because of banking procedures it will probably take another day or two for the money to arrive to your account.

Also in the case of sale, Registry will inform you of the change in the account.