Vietnamese stock exchanges
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Vietnamese stock exchanges Presentation Transcript

  • 1. Financial management
    • Vietnamese stock exchanges
    • Tutor: Ms. Le Binh
    • Presenters: Group 4- Tut 1 AC09
  • 2. Trading venue
    • Trading floor: take place transactions of buying and selling stocks
    • 2 trading venues:
    • Ho Chi Minh stock exchange (HOSE)
    • Hanoi stock exchange (HNX)
  • 3. HOSE
    • 20 July, 2000, started to operate with the name of HOSTC
    • 8 August, 2007, renamed into HOSE
    • Number of listed stocks in 2011: 284
  • 4. HNX
    • First operation on March, 2005 with the name of HASTC
    • Changed name to HNX on June, 2009
    • Number of listed stocks in 2011: 379
  • 5. Functions of 2 stock exchanges
    • Organize, regulate and operate securities trading activities;
    • Interrupt, suspend or cancel trading activities under the Securities Trading Regulation
    • Inspect and supervise the information about the listed firms and trading members
    • Supply market information and others related to listing stocks
    •   Deal with trader's problems related to trading activities
  • 6. Listing rules
    • Must be licensed by SSC before publishing stocks
    • Each stock must be listed on only 1 stock exchange
    • SSC makes decision of listed companies
  • 7. Precedence rules
    • Price priorities: higher price orders will be executed first
    • Time priorities: at the same price, the first entrance of the order will be matched first
  • 8. Process of VN stock market
    • Step1. Open stock trading account and setting order
    • Opening stock account
    • 2 ways - Offline: Go directly to stock agents
    • - Online: go on stock company websites having online registation function
    • Kinds of account: Cash Accounts, Margin Accounts, Discretionary Account
    • Setting order
    • Kinds of order: MP, LO, ATO, ATC
  • 9.
    • Step2. Transferring the order to Securities Trading Centre
    • Information on the order is checked by Trading department in securities companies
    • Transfer the order to broker
    • Match division of securities centre
    • Take part in auction
    • Step3. Matching order and informing the result
    • Matching order rule:• Based on price-time priority
    • (the best price orders are matched first)
    • • Based on ascending time order
    • (at the same price )
    • Informing the transaction result to investors
  • 10.
    • Step 4: Verify the transaction and payment procedures
    • Trading division transfer all order notes to accounting department
    • Vietnam Securities Depository operate the payment process
    • Securities trading centre send customers a confirmation note
    • Step 5. Settling the payment
    • Comparing and verifying transaction results
    • Carrying on settling clearing payment
    • (by Vietnam Securities Depository )
    • /
  • 11. III. Orders -At opening order (ATO) : HOSE - At closing order (ATC) : HOSE - Market price order (MP) : HOSE - Limit order (LO) : HOSE & HNX
  • 12. 1. Limit order (LO)
    • Buy or sell at a specific price
    • A buy limit order can only be executed by the broker at the limit price or lower
    • A sell limit order can only be executed at the limit price or higher
    • 2. Market price order
    • buy or sell a security at the best price currently available.
    • is simplest order
  • 13. ATO &ATC
    • prior to LO order in matching process
  • 14. Matching method Regulation 5. Sửa lệnh giao dịch thỏa thuận Continuous matching Negotiating/Put through Price unit 100 VND - Trading unit Share: 100 units Bond: 10 mil VND - Trading amount - Share: 5000 units Bond: 100 mil VND Order type Limit - Correcting Reason: 1. Technical error 2. Price adjusting Before executed. Reason: Technical error 15 min before closing Cancelling Before executed No cancelling without negotiation. Settlement T+3 Multilateral T+3 Bilateral T+2 Direct T+1/2/3
  • 15. Matching method Continuous order matching method Matching rule: 1 st . Price priority: Buy order-high price vs. sell order- low price 2 nd . Time priority: Waiting orders with same price: sooner first. 3 rd . Executed order: price of the sooner order applied.
  • 16. Put through/ Negotiating method
    • Process
    • + Parties determined:
    • Investor informs security company -> Exchange confirm + Result posted.
    • + No parties:
    • Investor -> Dealer: Seeking parties+ matching order-> Exchange confirm+ result posted.
    •    
  • 17. References
    • http://forum.thuchanhchungkhoan.com/showthread.php?t=1795
    • http://www.stock-market-investors.com/stock-investing-basics/stock-order-types.html
    • http://lastbull.com/order-routing-order-matching-in-stock-markets
    • http://lastbull.com/types-of-orders-in-stock-trading-based-on-price/
    • http://blog.namdan.net/2010/06/cac-lenh-trong-au-tu-chung-khoan.html
    • http://www.investopedia.com/terms/m/marketorder.asp
    • http://www.investopedia.com/terms/a/at-the-opening-order.asp
    • https://www.fxpro.com/vn/help/fxpro-xtrader-what-market-order
    • http://www.wisegeek.com/what-is-a-market-order.htm
    • http://en.wikipedia.org/wiki/Order_%28exchange%29
  • 18.  
  • 19. Lệnh mua Lệnh bán A, b, c, d…h: time priority <-> a first, b second, c third New order: Buy 10,000, price=54 (h) -> Executing: 9000 x 53 (G-H) 1000 x 53.5 (B-H) Buy Sell Price Price Amount Amount Price Price Amount
    • a
    52 55 2000 c 3000 d 51 53.5 3000 f 1500 e 50.5 53.5 2000 b 53 9000 g