Transactions on the Private Corporate Bond Trading System: When Are They Established? What Are the Methods of Implementation?
What is the type of transaction of privately placed corporate bonds?
The type of transaction of privately placed corporate bonds is stipulated in Clause 1, Article 13 of Circular 30/2023/TT-BTC as follows:
Organization of transactions of privately placed corporate bonds
1. The type of transaction of privately placed corporate bonds is a regular buy-sell transaction.
2. The Hanoi Stock Exchange applies the negotiated transaction method on the system for trading privately placed corporate bonds. The negotiated transaction method on the system for trading privately placed corporate bonds is carried out on the principle that the parties involved in the transaction self-negotiate and agree on the transaction contents. A transaction under the negotiated method is established when the buyer or the seller enters a transaction order into the system for trading privately placed corporate bonds and the counterparty confirms this transaction order.
3. The negotiated transaction method includes:
a) Electronic negotiation is a form of transaction in which trading members input firm bid and ask orders into the system or select suitable counter orders that have been input into the system to execute transactions;
...
Thus, according to the regulations, a transaction of privately placed corporate bonds is a regular buy-sell transaction.
When is a transaction on the system for trading privately placed corporate bonds established? What is the implementation method? (Image from Internet)
When is a transaction on the system for trading privately placed corporate bonds established?
According to the provisions in Clause 2, Article 13 of Circular 30/2023/TT-BTC as follows:
Organization of transactions of privately placed corporate bonds
1. The type of transaction of privately placed corporate bonds is a regular buy-sell transaction.
2. The Hanoi Stock Exchange applies the negotiated transaction method on the system for trading privately placed corporate bonds. The negotiated transaction method on the system for trading privately placed corporate bonds is carried out on the principle that the parties involved in the transaction self-negotiate and agree on the transaction contents. A transaction under the negotiated method is established when the buyer or the seller enters a transaction order into the system for trading privately placed corporate bonds and the counterparty confirms this transaction order.
3. The negotiated transaction method includes:
a) Electronic negotiation is a form of transaction in which trading members input firm bid and ask orders into the system or select suitable counter orders that have been input into the system to execute transactions;
...
Thus, according to the regulations, a transaction using the negotiated method on the system for trading privately placed corporate bonds is established when the buyer or the seller enters a transaction order into the system for trading privately placed corporate bonds and the counterparty confirms this transaction order.
What methods are included in the negotiated transaction on the system for trading privately placed corporate bonds?
Based on Clause 3, Article 13 of Circular 30/2023/TT-BTC as follows:
Organization of transactions of privately placed corporate bonds
...
2. The Hanoi Stock Exchange applies the negotiated transaction method on the system for trading privately placed corporate bonds. The negotiated transaction method on the system for trading privately placed corporate bonds is carried out on the principle that the parties involved in the transaction self-negotiate and agree on the transaction contents. A transaction under the negotiated method is established when the buyer or the seller enters a transaction order into the system for trading privately placed corporate bonds and the counterparty confirms this transaction order.
3. The negotiated transaction method includes:
a) Electronic negotiation is a form of transaction in which trading members input firm bid and ask orders into the system or select suitable counter orders that have been input into the system to execute transactions;
b) Ordinary negotiation is a form of transaction in which the buyer and seller negotiate directly with each other on transaction conditions and report the results to the system for trading privately placed corporate bonds to establish the transaction.
4. The trading activity of privately placed corporate bonds at the Hanoi Stock Exchange is carried out in accordance with the regulations in the Trading Regulation of Privately Placed Corporate Bonds of the Vietnam Stock Exchange.
Thus, negotiated transactions on the system for trading privately placed corporate bonds include the following 2 methods:
- Electronic negotiation is a form of transaction in which trading members input firm bid and ask orders into the system or select suitable counter orders that have been input into the system to execute transactions;
- Ordinary negotiation is a form of transaction in which the buyer and seller negotiate directly with each other on transaction conditions and report the results to the system for trading privately placed corporate bonds to establish the transaction.
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