3. 1. HCM Stock exchange HOSE
Established: July 20, 2000
Started to operate under the name HOSTC
Renamed: HOSE in Aug 8 2007
Number of listed stocks in 2011: 284
TRADING VENUES
4. 2. Hanoi Stock exchange HNX
First operation: March 2005
Starting name: HASTC
Renamed: HNX in June 2009
Number of listed stocks in 2011: 379
TRADING VENUES
5. 3. Function of 2 stock exchange venues
Organize, operate, regulate securities trading
activities.
Interrupt, suspend or cancel trading activities under
the Securities Trading Regulation
Inspect and supervise the information of listed firms
and trading members
Supply market information related to listing stocks
Deal with traders' problem in trading activities
TRADING VENUES
6. 4. Listing rule
Must be licenced by SSC before publishing stocks
Stock is allowed to be listed in only one stock
exchange venue
SSC make decisions of listed company
TRADING VENUES
7. 5. Precedence rule
Price priority: higher price orders will be executed
first
Time priority: at the same price, the first entrance of
order will be matched first
TRADING VENUES
8. MARKET ORDERS
• Buy or sell the number share at the price close
to the current market price
• Available and liquidity stock
• Buy at the only lower price and sell at higher
price
9. LIMIT ORDER
Buy or sell the stock at the price you are willing
to pay.
A buying LO : at the given price or lower one.
A selling LO : at the given price or higher one.
10. ATC & ATO
Priority to Limit Order
At-The-Opening Order (ATO)
Buy/Sell order at the opening price of a trading day
Valid within periodic matching time
Unmatched volume is canceled automatically when
opening price has been determined
At-The-Closing Order (ATC)
Buy/Sell order at the closing price of a trading day
Valid while closing price is being determined
Unmatched volume is canceled automatically when
closing price has been determined
11. ATC & ATO
Example
AAA stock, reference
price = 99. A, B and C is
the input order
Buying
volume
Buying
price
Selling
price
Selling
volume
5,000
(C)
100 ATO
(ATC)
4,000
(B)
99 2,000
(A)
Matching result:
- Matching price: 99
- Matching volume: 5,000
of which C-B: 4,000
- ATO (ATC) had the
priority to LO in the
matching process
12. TRADING PROCESS
1. Step 1: Registering account and placing
orders
Offline: Direct registration in stock agents
For individuals: ID number
For organizations: some documents are required
Online: creating account through the stock company’s
websites (which have online registration function).
2. Step 2: Transferring the orders to security
trading center before taking transaction
Requirement:
Investors deposit securities at securities company and ensure a sufficient
number of securities placed for sale on the securities trading account.
When setting orders to buy securities, the investors sign
deposit funds under the agreement with the Securities company
where investors open accounts
13. STEP3. MATCHING ORDER AND INFORMING THE
RESULT
Matching order rule:
• Time priority: same price, the order entered earlier gets the
higher priority
• Price priority: two orders entered into the system, the order with
the better price gets the higher priority
• Quantity priority: same price and time, priority is given to
orders with the larger quantity of shares
Inform the result:
Inform the security company-> investor
14. STEP 4: CLEARING AND SETTLEMENT
Data of trading results are sent to Vietnam Securities
Depository (VSD)
Buyers will receive stock and the seller will receive
money on account
“Delivery Versus Payment”
principal
15.
16. Matching rule:
1st . Price priority: Buy order-high price vs. sell order- low price
2nd . Time priority: Waiting orders with same price: sooner first.
3rd . Quantity priority: orders at same price and time: highest quantity
of shares will be matched first
TRADING METHODS
17. 1. Order matching method (OM)
Periodic order
matching (POM)
Continuous order
matching (COM)
The method is made
on the basis of
comparing buy orders
and sell orders of
stocks in a specified
time at single price
The method is made on
the basis of comparing
buy orders and sell
orders immediately
when they are inputted
into the trading system.
TRADING METHODS
18. 2. Put- through trading method (PT)
The trading method in which investors negotiate
with each other regarding to trading conditions and
representative staff will enter information into the
trading system to record
During the time of negotiation, investors can
place buying and selling orders following
negotiation order matching method
TRADING METHODS
20. Time HOSE HNX UPCOM
9:00-9:15 POM (ATC,LO) COM & PT ( LO)
9:15-11:30 COM & PT ( LO)
11:30-
13:00
Intermission Intermission
13:00-
13:45
COM (LO, ATO) COM & PT (LO, ATO)
13:45-
14:45
PT
Vietnamese stock exchanges use the different method at a specific time
TRADING METHODS
