Trading Guide
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Trading session
HSX MORNING: FROM 09H00 TO 11H30 - Opening session (auction): 09h00-9h15
- Trading session: 09h15-11h30
- Put-through session: 09h00 to 11h30
AFTERNOON: FROM 13H00 TO 15H00 - Trading session (C.O.M): 13h00-14h30
- Closing session (P.O.M): 14h30-14h45
- Put-through session: 13h00 to 15h00
HNX MORNING: FROM 09H00 TO 11H30 - Trading session: 09h00-11h30
- Put-through session: 09h00 to 11h30
AFTERNOON: FROM 13H00 TO 15H00 - Trading session: 13h00-14h30
- Closing session (auction): 14h30-14h45
- Put-through session: 13h00 to 15h00
UPCOM MORNING: FROM 09H00 TO 11H30 - Trading session: 09h00-11h30
- Put-through session: 09h00 to 11h30
AFTERNOON: FROM 13H00 TO 15H00 - Trading session: 13h00-15h00
- Put-through session: 13h00 to 15h00
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Order matching method
- Periodic order matching: The method compares buy orders and sell orders of stocks in a specified time. The executed price is the one that reaches the 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.
Continuous order matching: The method compares buy orders and sell orders immediately when they are inputted into the trading system.
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Matching principles
- Price Priority: Buy orders at higher price will take precedence. Sell orders at lower price will take precedence.
- Time Priority: In case buy or sell orders at the same price, those which entered into the trading system earlier will take precedence.
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Type of orders
HSX HNX UPCOM Limit order (L.O): Valid the entire day or till cancellation. Limit order can be place in any session during the day.
Market Price order (MP): market price order, valid in the C.O.M session. MP is an order to buy share at the lowest ask price or to sell share at the highest bid price available on the market. Remaining unmatched volume will be automatically changed to LO order at one price tick more aggressive. MP orders are canceled if there is no counter offer at all.
At The Open Order (ATO): Market order valid in the opening session, matching priority over L.O. Unmatched volume of ATO orders are automatically cancelled after opening session.
At The Close Order (ATC): Market order valid in the closing session, matching priority over L.O
Odd lot trading: odd lot transaction has to be done between the buyer and seller via an odd lot contract.
Limit order (L.O): Valid the entire day or till cancelation. Limit order can be place in any session during the day
ATC order: Market order valid in the closing session, matching priority over L.O
Match-or-Kill (MOK): An order to buy or sell a security that is cancelled if not executed immediately.
Match-and-Kill (MAK): An order to buy or sell all or part of a limit order immediately and cancel any portion that is not executed.
Market-to-Limit (MTL): an order to buy or sell a security at the best available market price. The remaining unfilled portion will be converted to limit order (LO) at one price tick more aggressive.
Odd lot trading: odd lot transaction are executed directly on the market via order-matching and put-through method
Limit order (L.O): Valid the entire day or till cancelation. Limit order can be place in any session during the day
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Board lot
HSX HNX UPCOM Equities: 1 lot = 10 shares
Face value of stocks or investment fund certificates: VND 10,000.
Face value of bonds: VND 100,000.
- Periodic Order Matching: from 10 to 500,000 shares/investment fund certificates.
- Put-through transactions: ≥ 20,000 shares/investment fund certificates.
Share unit: 100 shares
Bond unit: 100 bonds
Face value of shares: VND 10,000.
Face value of bonds: VND 100,000.
Trading volume per order:
- Stock put-through transactions: ≥ 5,000 shares/investment fund certificates.
- Bond put-through transactions: ≥ 1,000 bonds
Share unit: 100 shares
Bond unit: 100 bonds
There is no minimum trading volume required for put-through transaction
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Price incremental
Price Level (VND) HSX HNX UPCOM <10,000
10
100
100
10,000 – 49,950
50
100
100
≥ 50,000
100
100
100
Put-through transactions: any price can be placed
Bond transaction: any price can be placed
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Trading band
HSX HNX UPCOM ±7% of the reference price
±20% in the first listing day
± 10% against the reference price
±30% in the first listing day
No trading band applied to bonds
±15% of the reference price
±40% in the first listing day
No trading band applied to bonds
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Reference price:
HSX HNX UPCOM - The reference price is equal to the most recent trading day’s closing price as determined in Closing Session. In case where the closing price couldn’t be determined in the Closing Session, the closing price is equal to the last price at which shares were transacted on that day.
- On the ex-dividend date or ex-right date, the reference price shall be determined by adjusting last trading day’s closing price by the value of dividend or right accordingly.
- The reference price is equal to the most recent trading day’s closing price as determined in Closing Session. In cases where the closing price couldn’t be determined in Closing Session, the closing price is equal to the last price at which shares were transacted on that day.
- On the ex-dividend date or ex-right date, the reference price shall be determined by adjusting last trading day’s closing price by the value of dividend or right accordingly.
- Reference price is equal to the previous day’s volume weighted average price adjusted the stock/cash dividends (if any).
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Same day trading
Investor can place both BUY and SELL orders for the same stock of the same account in the continuous trading session on the same day. The investors have to pre-fund (cash/stocks) before they can make any trades.
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Amendment and cancellation
HSX HNX UPCOM - Amendment: It is impossible to change either the price or quantity of order. To amend your order, you must cancel your order first and place a new one.
- Amendment: Unmatched or partially-filled orders can be amended price/volume during the continuous order matching session:
- Amended volume increase: order priority is counted at the time of amendment
- Amended volume decrease: order priority remains unchanged
- Amendment: Unmatched or partially-filled orders can be amended price/volume during the continuous order matching session:
- Amended volume increase: order priority is counted at the time of amendment
- Amended volume decrease: order priority remains unchanged
- Cancelation:
- During continuous order matching session, unmatched orders/partially-filled orders can be canceled at any time
- During periodic order matching sessions (ATO/ATC): Cancellation of orders is not allowed (including those inputted in the previous continuous order matching session)
- Cancelation:
- During continuous order matching session, unmatched orders/partially-filled orders can be canceled at any time
- During periodic order matching sessions (ATO/ATC): Cancellation of orders is not allowed (including those inputted in the previous continuous order matching session)
- Cancelation: unmatched or partially-filled orders can be canceled at any time.
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Settlement period
HSX HNX UPCOM T+2 working days (i.e. securities purchased on trade date T can be sold on T+3)
Equities: T+2 working days
Bonds: T+2; choice of T+1 or T+2 for transaction over 100,000 bonds
Equities: T+2 working days
Bonds: T+2; choice of T+1 or T+2 for transaction over 100,000 bonds
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Tax regulation
- 0.1% on sell-transaction trading value.
- 5% on cash-dividend income for retail investors.
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FOL
- Unless a lower percentage applies, there is a limit 49% on foreign ownership in most public companies, including those listed on the Ho Chi Minh City Stock Exchange and the Hanoi Stock Exchange. This FOL has been lifted from 20% to 30% in 2003, to 49% in 2006, and just some are lifted 100% up to date.
- For banks, aggregate foreign investment is limited to 30%, any single individual investor to 5%, any institutional investor to 15%, and any “strategic investor” to 20%. FOL for banks include affiliated persons.
- ‘Equalization plans’ for state-owned or invested enterprises undergoing the process of equalization may specify foreign ownership limits depending on each case.
- Companies want to reserve room for strategic foreign investors may do so by lower the respective FOL. Therefore in some cases companies may have just 10% room for foreigners.
- Buying volume of shares will be deducted from the number of shares available for foreign investors to buy immediately after the buy order is executed
- Selling volume of shares will be added to the number of shares available for foreigners to sell after the settlement period (T+2)
- Once the foreign ownership limit is hit, unmatched buy orders or unmatched portion of buy orders will be automatically cancelled.
- Total number of shares available for foreign investors will be unchanged if the transaction is executed via put-through method between two foreigners.