HSX trading regulations

HSX trading regulations

1.Trading hours:

hsx trading regulation

2. Order matching methods:

a. Periodic order matching: The method is made on the basis of comparing buy orders and sell orders of stocks in a specified time. Principles to determine the price as follows:

  • The executed price that reaches largest transaction volume.
  • If more than one price satisfies the above condition, the price which is similar or closest with nearest matching order price will be selected.

b. Continuous order matching:

The method is made on the basis of comparing buy orders and sell orders immediately when they are inputted into the trading system.
c. Put-through

3. Matching principles:

a. Price Priority:

  • Buy orders at higher price will take precedence.
  • Sell orders at lower price will take precedence.

b. Time Priority:

  • In case buy or sell orders at the same price, those which entered into the trading system

earlier will take precedence in execution.

4. Trading unit and Price tick:

a. Trading unit:

  • Trading unit of order matching in parity lot: = 10 shares/closed-end fund certificates, ETFs.
  • Maximum trading volume per order is 500,000 shares/closed-end fund certificates, ETFs
  • Trading volume of put through transactions: 20,000 shares/closed-end fund certificates, ETFs

or more.

  • No trading unit applied for put through transactions.

b. Price tick:

  • For stock, closed-end fund certificates

  • No price tick applied for put through or bonds transaction.

5. Price range:

  • For stocks, closed-end fund certificates, ETFs:± 7% of the reference price.
  • No price range applied for bonds.
  • Price:
  • Ceiling price = Reference price x (100% + Price range)
  • Floor price = Reference price x (100% – Price range)

6. Type of orders:

  1. Order which is executed at the opening order matching price (ATO):
    • ATO is buy or sell order that is to be matched at the opening price.
    • ATO orders receive higher priority than limit orders when comparing to match.
    • ATO orders are entered into the trading system in time for Periodic order matching to

determine the opening price and will be automatically cancelled at the end of the


opening session if they are not executed or partially matched.

  • Transactions with volume from 1 to 9 shares (odd plot) are done directly between the

investors with the securities company; the trading price equals 90% of the reference


price on date when signing the contract.

  1. Order which is executed at the closing order matching price (ATC):

Similar to the ATO order but applied in time for periodic order matching to determine the


closing price.

  • Example of ATO (ATC) order:

Order Book (in time for periodic order matching): Stock AAA, reference price: 99. The


orders are entered into the system in the order A, B, C.

  1. Order matching result:
    • Matching price: 99
    • Matching volume: 5,000. In which: C – B : 4,000.
    • ATO (ATC) orders receive higher priority than limit orders when comparing to match.
  2. Market order (MP)
    • Is buy/sell order to be executed at lowest offer price/ highest bid price
    • Once inputting into the trading system, the MP sell order will be immediately executed

at the lowest offer price and the MP buy order will be immediately executed at the  highest bid price. In case the MP order is not fully matched, the MP order will be considered as buy order at a higher price or sell order at lower price and continue to match.

  • If the MP order is executed partially, the remaining volume of the MP buy order and the MP sell order will be changed to next higher price unit and next lower price unit respectively compared to the last executed price.
  • If the last executed price is limit up price/limit down price, the MP order will be changed  to limit order at limit up price/ limit down price
  • The MP order is valid in continuous order-matching session only.
  • The MP order will be automatically cancelled if there is no corresponding limit order at the time the MP order is input into the trading system
  • The MP orders of foreign investors will be automatically cancelled if the Foreign Owner  ship Limited (FOL) of the certain stock is no longer available.

 

7. Cancellation of orders:

  • In periodic order matching session:
    • Investors are not allowed to cancel orders in opening periodic order matching session time
    • Investors are not allowed to cancel orders in closing periodic order matching session time (including orders in previous continuous order matching session)
  • In continuous order matching session:
    • Investors are allowed cancel unmatched or partially filled orders during continuous order matching session

8. Transactions of foreign investors:

  1. In the time of order matching trading:
    • Buying volume of shares and closed-end fund certificates will be deducted from the  number available for a foreign investor to buy immediately after the buy order is executed.

  • Selling volume of shares and  closed-end fund certificates foreign investors will be added  to the number available for foreign investors to buy right after the settlement (T+3).

  • Buy orders or remaining part of partially-filled buy orders of foreign investors will be automatically cancelled if they are not executed when inputted into the trading system or ownership limit for foreigners is hit.

  1. In the time of put through trading:
    • Total number of shares available for foreign investors to buy will remain unchanged if the transaction is negotiated between two foreign investors.

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