Vietnamese stock exchanges


Published on

Published in: Economy & Finance
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Vietnamese stock exchanges

  1. 1. Financial management <ul><li>Vietnamese stock exchanges </li></ul><ul><li>Tutor: Ms. Le Binh </li></ul><ul><li>Presenters: Group 4- Tut 1 AC09 </li></ul>
  2. 2. Trading venue <ul><li>Trading floor: take place transactions of buying and selling stocks </li></ul><ul><li>2 trading venues: </li></ul><ul><li>Ho Chi Minh stock exchange (HOSE) </li></ul><ul><li>Hanoi stock exchange (HNX) </li></ul>
  3. 3. HOSE <ul><li>20 July, 2000, started to operate with the name of HOSTC </li></ul><ul><li>8 August, 2007, renamed into HOSE </li></ul><ul><li>Number of listed stocks in 2011: 284 </li></ul>
  4. 4. HNX <ul><li>First operation on March, 2005 with the name of HASTC </li></ul><ul><li>Changed name to HNX on June, 2009 </li></ul><ul><li>Number of listed stocks in 2011: 379 </li></ul>
  5. 5. Functions of 2 stock exchanges <ul><li>Organize, regulate and operate securities trading activities; </li></ul><ul><li>Interrupt, suspend or cancel trading activities under the Securities Trading Regulation </li></ul><ul><li>Inspect and supervise the information about the listed firms and trading members </li></ul><ul><li>Supply market information and others related to listing stocks </li></ul><ul><li>  Deal with trader's problems related to trading activities </li></ul>
  6. 6. Listing rules <ul><li>Must be licensed by SSC before publishing stocks </li></ul><ul><li>Each stock must be listed on only 1 stock exchange </li></ul><ul><li>SSC makes decision of listed companies </li></ul>
  7. 7. Precedence rules <ul><li>Price priorities: higher price orders will be executed first </li></ul><ul><li>Time priorities: at the same price, the first entrance of the order will be matched first </li></ul>
  8. 8. Process of VN stock market <ul><li>Step1. Open stock trading account and setting order </li></ul><ul><li>Opening stock account </li></ul><ul><li>2 ways - Offline: Go directly to stock agents </li></ul><ul><li> - Online: go on stock company websites having online registation function </li></ul><ul><li>Kinds of account: Cash Accounts, Margin Accounts, Discretionary Account </li></ul><ul><li>Setting order </li></ul><ul><li>Kinds of order: MP, LO, ATO, ATC </li></ul>
  9. 9. <ul><li>Step2. Transferring the order to Securities Trading Centre </li></ul><ul><li>Information on the order is checked by Trading department in securities companies </li></ul><ul><li>Transfer the order to broker </li></ul><ul><li>Match division of securities centre </li></ul><ul><li>Take part in auction </li></ul><ul><li>Step3. Matching order and informing the result </li></ul><ul><li>Matching order rule:• Based on price-time priority </li></ul><ul><li> (the best price orders are matched first) </li></ul><ul><li> • Based on ascending time order </li></ul><ul><li> (at the same price ) </li></ul><ul><li>Informing the transaction result to investors </li></ul>
  10. 10. <ul><li>Step 4: Verify the transaction and payment procedures </li></ul><ul><li>Trading division transfer all order notes to accounting department </li></ul><ul><li>Vietnam Securities Depository operate the payment process </li></ul><ul><li>Securities trading centre send customers a confirmation note </li></ul><ul><li>Step 5. Settling the payment </li></ul><ul><li>Comparing and verifying transaction results </li></ul><ul><li>Carrying on settling clearing payment </li></ul><ul><li>(by Vietnam Securities Depository ) </li></ul><ul><li>/ </li></ul>
  11. 11. III. Orders -At opening order (ATO) : HOSE - At closing order (ATC) : HOSE - Market price order (MP) : HOSE - Limit order (LO) : HOSE & HNX
  12. 12. 1. Limit order (LO) <ul><li>Buy or sell at a specific price </li></ul><ul><li>A buy limit order can only be executed by the broker at the limit price or lower </li></ul><ul><li>A sell limit order can only be executed at the limit price or higher </li></ul><ul><li>2. Market price order </li></ul><ul><li>buy or sell a security at the best price currently available. </li></ul><ul><li>is simplest order </li></ul>
  13. 13. ATO &ATC <ul><li>prior to LO order in matching process </li></ul>
  14. 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. 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. 16. Put through/ Negotiating method <ul><li>Process </li></ul><ul><li>+ Parties determined: </li></ul><ul><li>Investor informs security company -> Exchange confirm + Result posted. </li></ul><ul><li>+ No parties: </li></ul><ul><li>Investor -> Dealer: Seeking parties+ matching order-> Exchange confirm+ result posted. </li></ul><ul><li>    </li></ul>
  17. 17. References <ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul>
  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 <ul><li>a </li></ul>52 55 2000 c 3000 d 51 53.5 3000 f 1500 e 50.5 53.5 2000 b 53 9000 g