In a letter to the State Securities Commission (SSC) on Monday, the Viet Nam Association of Financial Investors (VAFI) urged HCM City bourse regulators not to bar investors from placing an order of less than 100 shares, as it would discriminate against small investors.
The bourse’s new policy would discourage small players from diversifying their portfolios, in affect putting them at higher financial risk, VAFI argued.
The HCM City Securities Trading Centre (HSTC) plans to exercise automatic order matching beginning May 7, requiring all orders to be at least 100 shares, instead of the current 10. The policy is aimed at preventing the trading system from overloading.
Orders for less than 100 shares account for 14 per cent of the daily trading volume, but only 1 per cent of the value, according to the HSTC.
The policy is a temporary measure to prevent the trading system from overloading. Regulators plan to return to the current minimum share order limit when the infrastructure can accomodate small trades.
VAFI is urging market regulators to instead increase the trading system’s capacity while still allowing small orders to be executed.
Source: VNS
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