Vietnam: What are the principles for matching orders in securities trading? What are the regulations on fixing and canceling orders for order matching transactions?
- What are the contents for confirming the results of matching securities trading orders in Vietnam?
- What are the principles for price and time priority in matching listed securities trading orders at the Vietnam Stock Exchange?
- What are the regulations on fixing and canceling orders for order matching transactions in trading listed securities at the Vietnam Stock Exchange?
What are the contents for confirming the results of matching securities trading orders in Vietnam?
Pursuant to Article 20 of the Regulation on Listing and Trading of Listed Securities issued together with Decision 17/QD-HĐTV in 2022 stipulating that the VSE confirm the results of matching securities trading orders under the following contents:
- Order number.
- Transaction confirmation number.
- Type of order.
- Stock code.
- Price.
- Volume.
- The time the transaction was made.
- Buy or sell orders.
- The notation of the order.
- Investor's account number.
- Trader’s code.
- Other contents as prescribed by the Vietnam Stock Exchange.
What are the principles for price and time priority in matching listed securities trading orders at the Vietnam Stock Exchange?
Pursuant to the provisions of Article 21 of the Regulation on Listing and Trading of Listed Securities issued together with Decision 17/QD-HĐTV in 2022 on the principles for price and time priority in matching listed securities trading orders at the Vietnam Stock Exchange:
Principles of matching orders and determination of order matching prices
1. The trading system compares buy and sell orders for securities according to the principle of price and time priority, specifically as follows:
a) Price priority:
Buy orders with a higher price are prioritized to be executed first.
Sell orders with lower prices are prioritized to be executed first.
Time priority: In case the buy or sell orders have the same price, the order entered into the trading system first will be prioritized to be executed first.
2. Principles of determining the prices for call auction:
a) Is the order matching price at which the trading volume is reached the largest and all buy orders with a higher price, sell orders with a price lower than the selected price must be executed.
b) In case there are multiple prices satisfying Point a of this Clause, the order matcorder matching price selected is the price at which the orders of one party must be executed in full, the orders of the counterparty must be executed in whole or in part.
c) In case there are multiple prices satisfying Point b of this Clause, the selected price is the price that coincides with or is close to the nearest order matching price by the order matching method.
d) In case no price satisfies Point b of this Clause, the selected price is the price that satisfies Point a of this Clause and coincides with or is close to the nearest the order matching price according to the order matching method.
3. Principle of determining the prices for continuous action: The order matching price is the price of the pending counter order on the order book.
Accordingly,the trading system shall compare buy and sell orders for securities according to the principle of price and time priority.
In particular, price priority are mentioned as follows:
Buy orders with a higher price are prioritized to be executed first.
- Sell orders with lower prices are prioritized to be executed first.
Time priority is mentioned as follows: In case the buy or sell orders have the same price, the order entered into the trading system first will be prioritized to be executed first.
What are the regulations on fixing and canceling orders for order matching transactions in trading listed securities at the Vietnam Stock Exchange?
Pursuant to the provisions of Article 22 of the Regulation on Listing and Trading of Listed Securities issued together with Decision 17/QD-HĐTV in 2022, the regulations on fixing and canceling orders for order matching transactions in trading listed securities at the Vietnam Stock Exchange are as follows:
- The fixing or cancellation of the order is only valid for the unexecuted order or the rest of the unfulfilled order.
- During the opening call auction session: it is not allowed to edit or cancel LO and ATO orders.
- During continuous auction sessions: LO orders are allowed to correct the price, volume and cancel orders during the trading period. The order of priority of the orders after fixing the orders is determined as follows:
+ The priority of the order remains the same if only the volume is reduced.
+ The priority order of the order is calculated since the correction order is entered into the trading system for cases of volume increase and/or price correction.
+ The order of priority for newly entered orders to replace canceled orders, including orders executed according to the method of modifying and canceling orders specified in Part 1 of Appendix III, is carried out according to the provisions of Clause 1, Article 21 of the Regulations on Listing and Trading of Listed Securities issued together with Decision 17/QD-HĐTV in 2022.
- During the closing call auction session: it is not allowed to fix or cancel LOs and ATC orders (including LOs transferred from continuous auction sessions).
- In post-trading session: PLOs are not allowed to be fixed or canceled.
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