Instructions for trading
HANOI STOCK EXCHANGE
1. Type of traded securities
Stocks, bonds and other securities have been registered for trading at the Hanoi Stock Exchange.
2. Trading time
Time from 9:00 a.m. to 3:00 p.m. Monday to Friday every week, except for legal holidays or days off according to the decision of the State Securities Commission, specifically:
| Session | Trading method | Trading Hours | Type of order |
| Morning session | Continuous order matching | 09h00’ – 11h30’ |
– Limit order (LO)
– Market orders (MAK, MOK, MTL)
|
| Negotiable Transactions | 09h00’ – 11h30’ | ||
| Breaktime | 11h30’ – 13h00’ | ||
| Afternoon session | Continuous order matching | 13h00’ – 14h30’ |
– Limit order (LO)
– Market orders (MAK, MOK, MTL)
|
| Periodical order matching closes | 14h30’ – 14h45’ |
– Limit order (LO)
– ATC order
|
|
| Negotiable Transactions | 13h00’ – 15h00’ | ||
| Market closed | 15h00’ | ||
Note: For Odd Lot Trading (≤ 99 Shares), periodical trading method is not applicable, only continuous trading method (LO orders can only be placed) and Negotiation trading are applicable.
3. Transaction method
a) Order matching method
Is a trading method performed by the trading system on the basis of matching buy and sell orders of securities as soon as the order is entered into the system. Order matching principles:
Price priority:
Buy orders with higher prices are prioritized to execute first.
Sell orders with lower prices are prioritized to execute first.
Time priority: If there are multiple orders with the same price, the order entered into the system first will be executed first.
In case the buy order and sell order satisfy the same price, the execution price is the price of the order entered into the system first
For example:
When an investor places an order to Buy ACB at the price of 42,000 VND, this order will be matched in order of price priority (high price is bought first) and time priority (first in is bought first) with corresponding Sell orders that has been entered into the system previously or is immediately matched with Sell orders entered into the system at a price equal to or lower than 42,000 VND.
When an investor places an order to Sell ACB at the price of 42,000 VND, this order will be matched according to price priority (lowest price sold first) and time priority (first in, first sold) with corresponding Buy orders that has been previously entered into the system or is immediately matched with Buy orders entered into the system at a price equal to or higher than 42,000 VND.
b) Periodical order matching method
A trading method performed by the trading system on the basis of matching buy and sell orders of securities at a specified time. The periodic order matching method is used to determine the closing price of securities during a trading session.
Determine price according to the following principles:
b.1 The order matching price is the price with the largest successful trading volume and all the buy orders with a higher price and the sell orders with a lower price than the selected price must be executed.
b.2 In case there are multiple prices that satisfy Point b.1, the price selected for execution is the price at which orders of one party must be executed entirely and orders of the corresponding party must be executed entirely or partially.
b.3 In case there are multiple prices that satisfy Point b.2, the price selected is the price that is identical or close to the nearest executed price according to the order matching method.
b.4 In case there is no price that satisfies Point b.2, the price selected is the price that satisfies Point b.1 and is identical or close to the nearest executed price according to the order matching method.
Example 1: During the periodical order matching closing session, we have the order book for stock XYZ as follows:
Investors B, C, D, E, G, H place LO orders at the price as shown in the table below, investors A and F place ATC orders.
Investor D orders to sell 200 shares at 2:35 p.m., investor G orders to sell 4,800 shares at 2:40 p.m.
Suppose the most recent matched price of XYZ during the day is 12.5
According to the principle of giving priority to those bidding at high prices and giving priority to those offering low prices, there will be a volume accumulation column (the buying column accumulates from top to bottom, the selling column accumulates from the bottom up), there will be the following table:
| Accumulation | Investors | Buy Volume | Giá | Sell Volume | Investors | Accumulation | Matching order |
| 5,000 | A | 5,000 | ATC | 10,500 | |||
| 6,000 | B | 1,000 | 12.4 | 10,500 | 6,000 | ||
| 6,000 | 12.3 | 5,000 | D , G | 10,500 | 6,000 | ||
| 8,000 | C | 2,000 | 12.2 | 500 | H | 5,500 | 5,500 |
| 8,000 | 12.1 | 2,000 | E | 5,000 | 5,000 | ||
| 8,000 | ATC | 3,000 | F | 3,000 |
According to the principle of price determination: consider 2 prices with the largest successful transaction volume:
Considering the price level 12.3, buy orders with higher prices (12.4, ATC), sell orders with lower prices (12.2; 12.1; ATC) are all executed and satisfy condition b.1
Considering price 12.4, the sell order at price 12.3 only matches 500, not all 5,000, which does not satisfy condition b.1
So the matching price is 12.3
Results and order of matching orders:
| Investors | Buy matching | Investors | Sell matching |
| A | 5,000 | F | 3,000 |
| B | 1,000 | E | 2,000 |
| H | 500 | ||
| D | 200 | ||
| G | 300 | ||
| Order matching | 6,000 | 6,000 |
In which, investors A and F placed ATC orders so they will be allocated first, investor D placed a sell order earlier so they matched all 200 shares, and investor G could only match 300 shares, leaving 4,500 shares not matched due to the overbought surplus, which means investor G sold at a price lower than the matched price but the order still did not match at all.
Example 2: During the periodical closing order matching session, we have the order book for stock XYZ as follows:
Investors B, C, D, E, G place LO limit orders at the price shown in the table below, investors A and F place ATC orders.
Investor D orders to sell 200 shares at 2:35 p.m., investor G orders to sell 800 shares at 2:40 p.m.
Suppose the most recent matched price of XYZ during the day is 12.5
According to the principle of giving priority to those bidding at high prices and giving priority to those offering low prices, there will be a volume accumulation column (the buying column accumulates from top to bottom, the selling column accumulates from the bottom up), there will be the following table:
| Accumulation | Investors | Buy Volume | Price | Sell Volume | Investors | Accumulation | Matching order |
| 5,000 | A | 5,000 | ATC | 6,000 | |||
| 6,000 | B | 1,000 | 12.4 | 6,000 | 6,000 | ||
| 6,000 | 12.3 | 6,000 | 6,000 | ||||
| 8,000 | C | 2,000 | 12.2 | 1,000 | D , G | 6,000 | 6,000 |
| 8,000 | 12.1 | 2,000 | E | 5,000 | 5,000 | ||
| 8,000 | ATC | 3,000 | F | 3,000 |
According to the principle of price determination:
3 price levels 12.2 ; 12.3 ; 12.4 satisfies condition b.1 and condition b.2
Considering condition b.3, the price 12.4 is close to the nearest matched price 12.5, so the matched price will be 12.4.
Results and order of matching orders:
| Investors | Buy matching | Investors | Sell matching |
| A | 5,000 | F | 3,000 |
| B | 1,000 | E | 2,000 |
| D | 200 | ||
| G | 800 | ||
| Order matching | 6,000 | 6,000 |
c) Agreement method:
A trading method in which members agree with each other on trading conditions (price, quantity) and the member’s Trading Representative enters information into the trading system to confirm this transaction.
4. Price listing unit
For continuous order matching transactions, the price quote unit is 100 VND for all prices.
For transactions by agreement and bonds: there is no regulation on the unit of quotation.
5. Daily trading range / Reference price
Price fluctuation range applies to stocks according to regulations of Ho Chi Minh City Stock Exchange (approved by the State Securities Commission)
Maximum price (ceiling price) = Reference price + (Reference price x fluctuation range)
Minimum price (floor price) = Reference price – (Reference price x fluctuation range)
There is no regulation on fluctuation amplitude for bonds.
Reference price is the closing price of the previous trading day.
In case of newly listed securities: amplitude +/- 20%, reference price is the expected transaction price given by the listing organization and listing consulting organization. (note that only LO order is available and negotiable transactions are not allowed)
Other cases according to the decision of the Hanoi Stock Exchange.
Fluctuation amplitude for bonds: not applicable.
Reference prices:
The reference price is determined by the order matching price of the closing Periodic Order Matching session of the previous trading day.
Newly listed stocks or stocks that are temporarily suspended from trading on the first day of trading or the day of resumption of trading will be traded without a margin. On the next trading day, the reference price of this stock will be calculated as prescribed above.
6. Type of trading order
Continuous order matching session: limit order (LO), market order (MAK, MOK, MTL).
Closing periodic order matching session: limit order (LO), ATC order.
a) Limit order (LO) is a buy or sell order executed at the investor’s specified price. The limit order is valid until canceled or until the end of the trading session.
b) Market order (MAK, MOK, MTL): is an order to buy securities at the lowest selling price or an order to sell securities at the highest available buying price on the market. When entering the order book, if there are no corresponding orders, these orders will be canceled.
– Market order matching and cancellation (MAK): after entering the order book, the order can be fully matched; or it may be partially matched, the remaining part that is not matched will be canceled.
– Market order fully matched or canceled (MOK): after entering the order book, if not fully matched, the order will be completely canceled.
– Market limit order (MTL): When entering the order book, the order will be executed immediately at the best available price. The remainder that cannot be fully executed due to the counterparty’s volume running out will be transferred. into a limit order. A buy market order will be converted into a buy limit order one unit higher than the last matched price, or a sell market order will be converted into a sell limit order one unit lower than the last matched price. price list.
Example of MAK, MOK, MTL orders: we have the following order book:
| Buy Volume | Price | Sell Volume | |
| 1,000 | 12 | ||
| 2,000 | 12.1 | ||
| 3,000 | 12.2 | ||
| 12.3 | 2,000 | ||
| 12.4 | 300 | ||
| 12.5 | 1,000 | ||
| Total | 6,000 | 3,300 |
MAK order: When we place a Buy MAK order with a volume of 7,000, the order will match the volume of 3,300 in the order of matching the low selling price first: match 2,000 at the price of 12.3; 300 price 12.4; 1,000 price 12.5; The remaining 3,700 will be canceled. With a MAK sell order, on the contrary, the order will match the volume of 6,000 in the order of matching the highest purchase price first, the remaining 1,000 will be canceled.
MOK order: With Buy order, MOK order is only valid when we place a volume of 3,300 to match the entire current selling balance. Orders to buy MOK with volume higher or lower than the current selling balance when entering the order book will be canceled. In contrast to the MOK sell order, the order will only be fully matched when placed with the current outstanding buying volume of 6,000.
MTL order: When we execute an MTL Buy order with a volume of 7,000, the order will be matched in order of the lowest selling price first, in this example the total matched volume is 3,300 specifically: matched 2,000 at price 12.3; 300 price 12.3; 1,000 price 12.5; The remaining 3,700 will be converted into a LO buy order at a price 1 quote unit higher than the last matched price, specifically 12.6. In contrast to the MTL sell order, the order will be matched in order of the highest buy price first. In this example, 6,000 will be matched at the prices 12.2, 12.1, 12, the remaining 1,000 will be converted into an LO sell order at the lower price. The last matched price is 1 quoted unit, specifically 11.9.
ATC order: is an order to buy or sell securities at the closing price. After the closing order matching period ends, ATC orders that are not matched or the portion that is not matched will be canceled. When matching orders, ATC orders are given priority and the volume of ATC orders will participate in determining the closing price. In case in the periodic order matching session to determine the closing price there are only ATC orders on both sides of the order book, the order matching price is determined as follows:
Equal to the nearest execution price if the total buy order volume is equal to the total sell order volume;
Equal to the latest executed price plus one (01) quoted price unit if the total buying volume is greater than the total selling volume;
Equal to the latest executed price minus one (01) quoted price unit if the total buying volume is less than the total selling volume
7. Regulations on transactions during the trading day
Investors can simultaneously place buy and sell orders with the same type of securities in each order match on one account.
In both cases: Sell first, buy later or Buy first, sell later, the investor must satisfy the following conditions:
Securities sold in any case must be securities available in the account.
When buying securities, investors must have money available in their account, or use the service of advance selling money (buying rights) from the matched sell order before buying; or ensure the deposit ratio in money (securities) according to the regulations of the State Securities Commission.
Investors are allowed to cancel/modify orders including Price Correction and Volume Correction if the order or the remainder of the order has not been executed during the continuous order matching session.
8. Payment regulations
Stock trading: multilateral clearing on the afternoon of T+2
Bond trading: multilateral clearing on T+1
9. Regulations on order modification/cancellation:
a) Continuous order matching method
Order correction/cancellation of trading orders is only performed for orders that have not yet been executed or the remaining portion of the original order that has not been executed (including LO orders and the remaining unmatched portion of MTL orders).
Orders that have been entered into the system of Hanoi Stock Exchange are allowed to edit price and volume.
b) Periodical closing order matching method:
Amendment/Cancellation of orders is not allowed during the period of closing periodic order matching (including orders transferred from continuous order matching)
c) Agreement method: allowed to modify/cancel orders but must meet the following conditions:
Must present original order to Hanoi Stock Exchange
The correction order must be approved by the counterparty
Must be approved by Hanoi Stock Exchange.
Order modification time must be completed no later than 15 minutes before the trading session ends.
d) Order of priority after editing orders:
An unmatched LO order or the remainder of an unmatched LO order will automatically move to the next session. The priority order of orders after correction is calculated from the time the correction order is entered into the trading system.
In case of correction of increased volume: the priority order of the order after correction is calculated from the time the correction order is entered into the trading system.
In case of volume reduction: order priority does not change.
10. Other regulations
a) Open an account
Investors (Except investors who are: Fund Management Companies, Foreign Securities Companies, Insurance Companies with 100% foreign capital, Securities Practitioners) will be allowed to open many trading accounts at many different securities companies (but each securities company can only open 1 trading account and 1 margin trading account).
When opening a trading account, the Investor must notify the securities company of the entire number of accounts and account codes previously opened at other securities companies (if any).
Securities practitioners working for a securities company may only open a securities trading account for themselves at that securities company.
b) Authorization for securities trading
Investors can authorize in writing (without notarization) an organization such as a securities company and/or a depository bank to perform transactions on their behalf.
Authorizing another individual to perform transactions on your behalf must be in writing with local or notarized confirmation, clearly stating the scope of authorization and that the authorized person is not allowed to perform transactions. translate with themselves or with a third person to whom they are also authorized.
Securities company employees are not allowed to receive authorization from investors.
