1. Type of traded securities

These are stocks and bonds of public companies approved for trading registration at the Hanoi Stock Exchange.

2. Trading time

3. Trading principles

Investors open a securities trading account and place orders to buy/sell securities at VFS. In case an investor already has a securities trading account listed at VFS, there is no need to open an additional trading account on the UPCoM market.

– Trading margin: When placing an order to sell securities, the investor must have a sufficient amount of securities to sell in the securities trading account. When placing an order to buy securities, the investor makes a deposit of 100% of the purchase amount plus any additional fees.

– When an investor places a stock trading order, the investor’s bid/ask price must be within the price fluctuation range of the trading day.

Transaction method

Securities transactions registered for trading at Hanoi Stock Exchange are carried out in two methods: Continuous order matching method and Agreement method.

a. Continuous order matching method

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 trading system.

For example:

• When an investor places an ABI Buy order 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 first bought) with other orders. Reciprocal Sell 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 ABI Sell order 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 opposite Buy orders. The response has been previously entered into the system or is immediately matched with Buy orders entered into the system with prices equal to or higher than 42,000 VND.

b. Agreement method:

Is a trading method in which members agree with each other on trading conditions (price, quantity, payment method) and the member’s Trading Representative enters information into the trading system to confirm this transaction.

For example: When an investor needs to carry out a put-through transaction, the investor can find a partner himself or ask VFS to find a partner to carry out the transaction and agree on transaction conditions (price, amount). quantity, payment method). After reaching an agreement, investors must go through VFS to enter orders into the trading system and confirm the transaction.

4. Trading unit/price quote

a. Transaction unit

• Continuous order matching transactions: even lots are 100 stocks or 100 bonds.
• Negotiable transactions: no transaction unit specified.
• Transactions with volume from 01 to 99 stocks or bonds (odd lots) can be carried out by continuous order matching and agreement trading methods. On the first trading day of newly registered stocks or the first trading day of stocks with no transactions for more than 25 consecutive sessions, the Hanoi Stock Exchange does not accept odd-lot trading orders until a reference price is available. is determined from the results of the continuous order matching method

For example: For put-through transactions, customers can place orders to buy/sell securities with a quantity of 215 shares.

b. Price listing unit

• Stock: 100 VND
• Bonds: no votes specified

For example: Customers can order/sell 200 shares for 30,100 VND. (set 30,150 VND, 30,188 VND is the wrong price)

5. Par value

• Share par value: 10,000 VND (ten thousand VND)/share
• Bond par value: 100,000 VND (one hundred thousand VND)/bond

6. Reference price/ Daily trading limit

• Reference price: The reference price of a stock is the weighted average of prices realized through the continuous order matching method of the most recent previous trading day.
• For new stocks registered for trading on the first trading day and stocks with no transactions for more than 25 consecutive trading sessions, on the first day of resumption of trading, the price fluctuation range applied is ±40% compared to the reference price and Hanoi Stock Exchange only receives orders to buy and sell securities by continuous order matching trading method; Hanoi Stock Exchange does not receive orders to buy and sell securities by trading method agreement until a reference price is established from the results of the continuous order matching method.
• In case of securities transactions not entitled to dividends and accompanying rights, the reference price on the ex-rights date is determined on the principle of taking the average price of the most recent trading day adjusted according to the value of dividends received. or the value of the accompanying rights, except in the case of:
  • Enterprises issue convertible bonds;
  • The enterprise issues additional shares at an issue price higher than the average price of the trading day immediately preceding the ex-rights date.
• In case of stock split or consolidation, the reference price at the return transaction date is determined on the principle of taking the average price of the trading day before the split or consolidation date and adjusted according to the ratio of stock split and consolidation.
• In some necessary cases, the Hanoi Stock Exchange may apply other reference price determination methods after being approved by the State Securities Commission.

For example:

• The reference price of ABI stock on July 20, 2013 is: 40,100 VND

Ptc = = 40.100 (rounded in hundred dong)

1. Price fluctuation range

• Stock price fluctuation amplitude is +/-15% (price fluctuation amplitude does not apply to Bonds). The price fluctuation amplitude will be subject to change depending on the market situation at each specific time and as approved by the State Securities Commission.
• Price fluctuation limits for stocks are determined as follows:
  • Maximum price (ceiling price) = Reference price + (reference price x 15%)
  • Minimum price (floor price) = Reference price – (Reference price x 15%)

7. Order matching principles

• Price priority
• Buy orders with higher prices are prioritized for execution first.
• Sell orders with lower prices are prioritized for execution 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: In the trading session on January 3, 2013, we had buy and sell orders for ABI stock as follows

Matching results:

Reference prices as of January 4, 2008 are:

Ptc = = 40.700

Explain:

• When an order with SHL 003 is entered into the trading system, the order with SHL 002 will be matched with the order with SHL 003 with a matching quantity of 300 shares according to the principle of price priority and the matching price is the price entered into the system first. In this case the matched price is 41,000.
• When an order with SHL 005 is entered into the system, the order with SHL 001 will match the order with SHL 005 at the price of 40,500, the matched quantity is 200 shares; Next, the order with SHL 004 will continue to be matched with the order with SHL 005 at the price of 40,500, the matched quantity is 100 shares. The explanation for the above result is that the order with SHL 001 is entered into the system before the order with SHL 004, so it has priority for execution as soon as the corresponding order 005 is entered into the system.

8. Type of trading order

• Trading orders by order matching method are limit orders.
• A limit order is an order to buy or sell that is executed at an investor’s specified price. The limit order is valid until canceled or until the end of the trading session.

For example: ABI Buy Order with quantity 300 at price 41,000 VND

ABI Sell order with quantity of 500 at price 40,500 VND

9. Payment regulations

• For stock transactions: multilateral clearing on the afternoon of T+2
• For bond transactions: multilateral clearing on T+1 day

10. Regulations on order cancellation

i. Continuous order matching method

• Modifying orders and canceling trading orders is only valid for the original order that has not been executed or the remainder of the original order that has not been executed
• With correction orders, investors are only allowed to Modify price and Modify volume:
  • Order priority remains unchanged in case of volume reduction;
  • Order priority is calculated from the time the correction order is entered into the trading system for cases of volume correction and/or price correction.

For example: In the trading session on January 3, 2013, an investor placed an order to Buy ABI with a quantity of 300 at the price of 40,500. When there is a need to cancel an order, investors contact VFS’s Brokerage Department to know the order matching results. Depending on the case, the order is allowed or not allowed to be canceled:

• Case 1: If the order is completely unmatched (300 ABI shares are waiting to be matched), this entire order is allowed to be canceled.
• Case 2: If the order has been completely matched (300 ABI shares have been fully matched), cancellation of this order is not allowed.
• Case 3: If the new order is partially matched with the quantity of 100 ABI shares (the remaining 200 ABI shares are waiting to be matched), then only the remainder of this order is allowed to be canceled, that is, the order is only allowed to be canceled with the remaining amount of 200 ABI shares.

ii. Method of agreement

• Order cancellation is not allowed

11. 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.

12. Other regulations

a. Open an account

• Each investor is only allowed to open 01 securities trading account at VFS, except in the following cases when opening more than 01 securities trading account at VFS:
  • Fund management company
  • Insurance company with 100% foreign capital
  • Foreign investors are foreign securities companies established under foreign laws.
• 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).

b. Authorization to trade securities

• 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.