Principles of Order Matching and Determination of Order Matching Prices in Listed Securities Transactions - Regulatory Provisions
Principles of Order Matching and Determination of Order Matching Prices
Based on the provisions of Article 21 of the Listing and Trading of Listed Securities Regulations issued together with Decision 17/QD-HDTV in 2022 regarding the principles of order matching and determination of order matching prices in the trading of listed securities at the Stock Exchange. To be specific:
Principles of Order Matching and Determination of Order Matching Prices
1. The trading system conducts matching of buy and sell orders for securities based on the priority order of price and time. To be specific:
a) Price Priority:
- Higher-priced buy orders are prioritized for execution first.
- Lower-priced sell orders are prioritized for execution first.
b) Time Priority: In the case of buy or sell orders with the same price, the order entered into the trading system first will be prioritized for execution first.
2. Principles for determining periodic order matching prices:
a) The execution price at which the trading volume is maximized and all higher-priced buy orders and lower-priced sell orders must be executed fully.
b) In case there are multiple prices satisfying point a of this clause, the selected price is the one at which the orders of one side must be fully executed, and the orders of the opposing side must be fully or partially executed.
c) In case there are multiple prices satisfying point b of this clause, the selected price is the one that matches or is closest to the most recent execution price in the matching method.
d) In case there are no prices satisfying point b of this clause, the selected price is the one satisfying point a of this clause and matching or closest to the most recent execution price in the matching method.
3. Principles for determining continuous order matching prices: The execution price is the price of the corresponding order pending in the order book.
When the trading system conducts matching of buy and sell orders for securities based on the priority order of price and time.
In which the price priority principle is:
- Higher-priced buy orders are prioritized for execution first.
- Lower-priced sell orders are prioritized for execution first.
As for the time priority principle: In the case of buy or sell orders with the same price, the order entered into the trading system first will be prioritized for execution first.
Principles of order matching and determination of order matching prices in trading listed securities are regulated. (Image from the Internet)
Content Confirmed by the Stock Exchange for Order Matching Results
Based on Article 20 of the Listing and Trading of Listed Securities Regulations issued together with Decision 17/QD-HDTV in 2022, the Stock Exchange confirms the trading results by the matching method with the following content:
- Order transaction number.
- Transaction confirmation number.
- Order type.
- Securities code.
- Execution price.
- Execution volume.
- Transaction execution time.
- Buy or sell order.
- Order symbol.
- Investor's account number.
- Trading member's code.
- Other content as regulated by the Vietnam Stock Exchange.
How are Order Matching Transactions Canceled or Amended?
Based on the provisions of Article 22 of the Listing and Trading of Listed Securities Regulations issued together with Decision 17/QD-HDTV in 2022 regarding the amendment and cancellation of order matching transactions in the trading of listed securities at the Stock Exchange as follows:
- The amendment and cancellation of order matching transactions are only effective for orders not yet executed or the remaining part of orders not yet executed.
- During the opening session: amendment or cancellation of LO, ATO orders is not allowed.
- During continuous matching sessions: LO orders are allowed to amend prices, volumes, and cancel orders during the trading time. The priority order of the order after amendment is determined as follows:
+ Priority order remains unchanged if only the volume is reduced.
+ Priority order is calculated from the time the amended order is entered into the trading system for cases of increasing volume and/or amending prices.
+ Priority order for new orders replacing the canceled ones, including orders executed as per amendment or cancellation method stipulated in part 1 of Appendix III, is determined according to clause 1 of Article 21 of the Listing and Trading of Listed Securities Regulations issued together with Decision 17/QD-HDTV in 2022.
- During the closing session: amendment or cancellation of LO, ATC orders (including LO orders transferred from continuous matching sessions) is not allowed.
- In post-trading sessions: PLO orders are not allowed to amend or cancel.
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