HoSE announces some changes in trading

The Ho Chi Minh City Stock Exchange (HoSE) has just announced a number of changes in trading regulations when applying a new information technology system to the Vietnamese stock market (TTCK).

Accordingly, compared to current securities trading regulations, securities trading regulations when applying the new information technology system are expected to have certain changes that investors need to note as follows:

Regarding ATO/ATC orders in the periodic order matching session, ATO/ATC orders will not be prioritized over previously entered limit orders when matching orders (currently, ATO/ATC orders will be prioritized over limit orders).

ATO/ATC orders will be displayed at a specified price as limit orders (currently ATO/ATC orders are displayed at prices marked “ATO” “ATC”);

The new display principle is as follows: in case there is only a remaining buy or sell order of ATO or ATC order, the displayed price of the ATO/ATC buy or sell order is the expected matching price. In case there is no expected matching price, the displayed price is the nearest matching price or the reference price (in case there is no nearest matching price).

In case of remaining buy or sell orders of limit orders, the displayed price of the ATO/ATC buy order is the highest buy price plus 01 quotation unit (if this determined price is higher than the ceiling price, it will be displayed as the ceiling price). The displayed price of the ATO/ATC sell order is the lowest sell price minus 01 quotation unit (if this determined price is lower than the floor price, it will be displayed as the floor price).

Regarding the modification or cancellation of matching orders, investors are allowed to modify the price or volume of unexecuted limit orders (LO orders) or the remaining portion of unexecuted orders during the continuous order matching period according to the following principle: Orders to modify volume reduction will not change the order's priority; orders to modify volume increase or price will change the order's priority.

Regarding negotiated transactions, investors are not allowed to edit or cancel negotiated transactions that have been executed on the trading system (currently, it is allowed to edit incorrectly entered negotiated transactions during trading hours by canceling the incorrect negotiated transaction and entering the correct negotiated transaction).

Regarding securities transactions of foreign investors (FIIs), for matching transactions of stocks and closed-end fund certificates, the room (volume remaining allowed to be purchased by FIEs) decreases when the FIEs' purchase order is entered into the trading system (according to current regulations, the room decreases immediately after the FIEs' purchase order is executed).

In case a foreign investor's purchase order is canceled by the investor or the trading system, the room increases by the canceled volume. In case a foreign investor's purchase order is modified to decrease the volume, the room increases by the decreased volume of the order.

For negotiated transactions of stocks and closed-end fund certificates, room decreases when a foreign investor's bid is entered into the trading system in the case of a negotiated transaction between a foreign investor buying and a domestic investor selling (according to current regulations, room decreases immediately after the negotiated transaction between a foreign investor buying and a domestic investor selling is executed).

In case a foreign investor cancels a purchase order with a domestic investor, the room will be increased immediately after the cancellation order is entered into the trading system.

Regarding odd lot transactions, odd lot transactions will be conducted according to the periodic order matching method, continuous order matching method and negotiated transaction method (currently odd lot transactions are conducted according to the continuous order matching method and negotiated transaction method).

Regarding the trading of restricted securities, restricted securities will be traded all day and apply the periodic order matching trading method, including: periodic order matching session to determine the opening price, then periodic order matching sessions each lasting 15 minutes and periodic order matching session to determine the closing price (according to current regulations, restricted securities can only be traded in the afternoon trading session by order matching and negotiation method).

Regarding the display of information on the 3 best bid and offer prices in the periodic order matching session, in the periodic order matching session, the information on the 3 best bid and offer prices displayed are the best bid and offer prices expected to remain after the order matching (currently displaying information on the 3 best bid and offer prices of all orders on the trading order book).

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