Changes investors need to know when stocks apply the new system

HoSE has just updated basic information on expected changes in trading regulations when applying a new information technology system to the stock market compared to the present.

Changes investors need to know when stocks apply the new system

HoSE has just updated basic information on expected changes in trading regulations when applying a new information technology system to the stock market compared to the present.

In order to help investors understand the expected changes in securities trading regulations when applying the new information technology system to the Vietnamese stock market, the Ho Chi Minh City Stock Exchange has just announced the expected changes in trading regulations when applying the new information technology system compared to the current one.  

About ATO/ATC orders in periodic order matching session

When applying the new IT system, 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 as limit orders (currently ATO/ATC orders are displayed at prices marked “ATO” “ATC”). The new display rules are 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 an ATO/ATC buy order is the highest remaining buy price plus 01 quote 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 will be displayed as the floor price).

About editing and canceling matching orders

When applying the new information technology system, investors are allowed to correct 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 correct volume reduction will not change the order's priority; orders to correct volume increase or price will change the order's priority.  

About the deal

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).

On securities transactions of foreign investors (FIIs)

For stock and closed-end fund certificate matching transactions: When applying the new information technology system, the room decreases when the foreign investor's purchase order is entered into the trading system (according to current regulations, the room decreases immediately after the foreign investor's purchase order is executed). In case the foreign investor's purchase order is canceled by the investor or the trading system, the room increases by the canceled volume; In case the 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, the room will decrease when the 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, the room will decrease immediately after the negotiated transaction between a foreign investor buying and a domestic investor selling is executed). In case a foreign investor cancels a bid with a domestic investor, the room will increase immediately after the cancellation order is entered into the trading system.

About odd lot transactions

When applying the new information technology system, odd lot transactions will be carried out by periodic order matching, continuous order matching and negotiated transaction methods (currently odd lot transactions are carried out by continuous order matching and negotiated transaction methods).

On the trading 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).

About displaying information on the 3 best buy and sell prices in the periodic order matching session

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).

This is basic information on the expected changes in trading regulations when applying the new information technology system to the Vietnamese stock market compared to the current one. More detailed and complete content will be included in the Listing and Trading Regulations for listed securities issued by the Vietnam Stock Exchange.

Source: https://baodautu.vn/nhung-thay-doi-nha-dau-tu-can-biet-khi-chung-khoan-ap-dung-he-thong-moi-d253355.html