Operating the new information technology system: How will securities trading change?

ANTD.VN - Ho Chi Minh City Stock Exchange (HOSE) has just announced the expected changes in trading regulations when applying a new information technology system for the Vietnamese stock market compared to the current one.

HOSE is in the process of testing a new information technology system.

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

ATO/ATC orders in periodic order matching session

When applying the new information technology system to the Vietnamese stock market, 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 like 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 remaining buy or sell balance of ATO or ATC orders: The displayed price of ATO/ATC buy or sell orders is the expected matching price. In case there is no expected matching price, the displayed price is the most recent matching price or reference price (in case there is no most recent 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 an ATO/ATC sell order is the lowest remaining sell price minus 01 quote unit (if this determined price is lower than the floor price, it is displayed as the floor price).

Edit, cancel matching transaction orders

When applying the new information technology system to the Vietnamese stock market, investors are allowed to adjust the price or volume of unexecuted limit orders (LO orders) or the remaining part of unexecuted orders during the continuous order matching period according to the principle: Orders to reduce volume will not change the order's priority; orders to increase volume or adjust price will change the order's priority.

Negotiated transactions

When applying the new information technology system, investors are not allowed to correct or cancel the agreed transactions that have been executed on the trading system (currently, it is allowed to correct the wrongly entered agreed transactions during trading hours by canceling the wrong agreed transaction and entering the correct agreed transaction).

Securities transactions of foreign investors (FIIs)

For stock and closed-end fund certificate matching transactions: When applying the new information technology system, room (volume still allowed to be purchased by foreign investors) is reduced when foreign investors' purchase orders are entered into the trading system (according to current regulations, room is reduced immediately after foreign investors' purchase orders are 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 revised to decrease the volume, the room increases by the decreased volume of the order.

For negotiated transactions of stocks and closed-end fund certificates: When applying the new information technology system, 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.

Odd lot trading

Odd lot transactions will be conducted by periodic order matching, continuous order matching and negotiated transaction methods (currently odd lot transactions are conducted by continuous order matching and negotiated transaction methods).

Transactions of securities subject to trading restrictions

When applying the new information technology system, securities subject to restricted trading will be traded all day and will 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, securities subject to restricted trading can only be traded in the afternoon trading session by order matching and agreement method).

Display price information

When applying the new information technology system, during the periodic order matching session, the information of the 3 best bid and offer prices displayed are the best bid and offer prices expected to remain after the order matching (currently, information of the 3 best bid and offer prices of all orders on the trading order book is displayed).

Ho Chi Minh City Stock Exchange recommends that investors study the detailed and complete contents of the Regulations on listing and trading of listed securities issued by the Vietnam Stock Exchange to ensure compliance with regulations on securities trading on the Ho Chi Minh City Stock Exchange.

Currently, HOSE is still testing the new information technology system. Most recently, this unit has sent a document requesting securities companies to have a data plan to use the data at the end of February 28, 2025 for testing.

Source: https://www.anninhthudo.vn/van-hanh-he-thong-cong-nghe-thong-tin-moi-giao-dich-chung-khoan-se-thay-doi-the-nao-post605986.antd