The HCM City Securities Trading Center plans to begin an automatic order matching session from May 7 while still maintaining two time-order matching sessions.
Le Hai Tra, deputy director of the center, said more orders could be handled with the automatic matching session.
Time-order matching that will establish the opening price will occur between 8:30-9am.
From 9-10am the automatic order matching session will take place and from 10-10:30am the time-order matching session, which will set the closing price.
Negotiated transactions for shares and fund certificates will take place between 10:30-11am.
Bond deals will be done via negotiations as normal from 8:30-11am.
From May 7, three new order types at the opening (ATO), at the close (ATC) and at market price (MP), will be put in use. Currently only the limit order is in operation.
ATO and limited orders will be for the first and the second session.
Limit and MP orders will be for the second automatic matching session and the ATC order for the final session.
Price fluctuating limits will remain at 5% from the previous day’s closing price.
For foreign investors, if a buying order is not matched, the order will be cancelled, and if it is matched partly, the remaining of the order will be cancelled automatically.
The cancellations are done to give the market time to discover how much remaining room is left for foreign investors.
Foreign ownership currently cannot exceed the regulated room limits (49% for listed companies and 30% for listed banks).
Any newly listed organisation and its consulting securities company will have to offer the expected price as reference for its first trading day.
That first day’s fluctuation will be 30%. This is different from the current practice, which establishes share or certificate prices by order matching on the first day.
If the price is not established for the share or fund certificate on the first three trading days, the listed organisation will have to redefine its reference price.
Also from May 7, a big lot of shares or certificates will comprise 20,000 units rather than 10,000, as currently regulated.
From June 7, a round lot will be 100 shares or certificates, up from the current 10 units.
In another development, on Monday the securities center awarded trading member certificates to four additional securities companies, Bien Viet, Sao Viet, Tam Nhin and VP Bank Securities.
Source: VNS
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