Instructions on how to determine the ceiling price, floor price, and price fluctuation range in securities at the Ho Chi Minh City Stock Exchange
I want to ask for instructions on how to determine the ceiling price, floor price, and price fluctuation range in securities at the Ho Chi Minh City Stock Exchange - Mr. Hung (HCMC)
What are the ceiling price and floor price in securities according to the law in Vietnam?
Ceiling and floor prices in securities are two limit prices that investors can place trading orders in a trading session. The ceiling and floor prices are calculated based on the reference price of the previous trading session. Specifically, the distinction is as follows:
- Ceiling price:
The ceiling price is the highest price that an investor can buy or sell in the trading session that day.
The ceiling price on the securities price board is usually indicated in purple.
- Floor price:
The floor price is the lowest price that an investor can buy or sell in the trading session that day.
The floor price on the securities price board is usually indicated in light blue.
Instructions on how to determine the ceiling price, floor price, and price fluctuation range in securities at the Ho Chi Minh City Stock Exchange - Source: Internet
Instructions on how to determine the ceiling price, floor price, and price fluctuation range in securities at the Ho Chi Minh City Stock Exchange
Pursuant to Article 9 of the Securities Trading Regulations at the Ho Chi Minh City Stock Exchange issued together with Decision 352/QĐ-SGDHCM in 2021, the following regulations on how to determine the ceiling price, floor price, and price fluctuation range in securities are provided:
(1) Ceiling and floor prices in the trading day of common stocks, closed-end funds, and ETF certificates:
Ceiling price = Reference price + (Reference price x Ceiling price fluctuation range)
Floor price = Reference price - (Reference price x Floor price fluctuation range)
In which, the price fluctuation range (including ceiling price fluctuation range and floor price fluctuation range) in the trading day for common stocks, closed-end funds, and ETF certificates is set at +7% of the reference price.
Note: This price fluctuation range only applies to trading at the Ho Chi Minh City Stock Exchange.
The ceiling price/floor price fluctuation range does not apply in the following cases:
- The first trading day of newly listed common stocks, closed-end funds, and ETF certificates.
- The first day that common stocks, closed-end funds, and ETF certificates are traded again after being suspended for trading for more than 25 days.
(2) Ceiling and floor prices in the first trading day and normal trading day of call warrants based on common stock securities:
Ceiling price = Warrant reference price + (underlying stock ceiling price - underlying stock reference price) x 1/Conversion ratio
Floor price = Warrant reference price - (underlying stock reference price - underlying stock floor price) x 1/Conversion ratio
In the case that the floor price of the warrant is less than or equal to zero, the floor price will be set to the smallest quotation unit of 10 VND.
Note: If the ceiling price or floor price of common stocks, closed-end funds, and ETF certificates = Reference price, then the ceiling price and floor price are adjusted as follows:
Adjusted ceiling price = Reference price + one quotation unit.
Adjusted floor price = Reference price - one quotation unit.
In the case that the adjusted floor price is less than or equal to zero, the floor price will be adjusted to the reference price.
Ceiling/floor prices in the trading day of common stocks, closed-end funds, ETF certificates, and warrants are rounded down for the ceiling price, rounded up for the floor price according to the quotation unit. There is no limit on the ceiling price and floor price in the day for bond trading.
What types of securities are traded on the Ho Chi Minh City Stock Exchange?
Pursuant to Article 3 of the Securities Trading Regulations at the Ho Chi Minh City Stock Exchange issued together with Decision 352/QĐ-SGDHCM in 2021 stipulating types of securities are traded on the Ho Chi Minh City Stock Exchange as follows:
General Rules
1. The Ho Chi Minh City Stock Exchange organizes trading for the following types of securities:
a) Common stocks;
b) Closed-end funds;
c) Exchange-traded funds (ETFs);
d) Bonds;
dd) Warrants;
e) Other types of securities after obtaining the approval of the State Securities Commission (SSC).
2. Listed securities on the Ho Chi Minh City Stock Exchange are traded through the Ho Chi Minh City Stock Exchange's trading system, except for cases of transfer of ownership outside the securities trading system in accordance with the legal provisions in Clause 2, Article 6 of Circular 119/2020/TT-BTC dated December 31, 2020 of the Minister of Finance on the registration, custody, clearing, and settlement of securities trading activities.
3. Members must comply with this Regulation, the Trading Member Regulations issued by the Ho Chi Minh City Stock Exchange, and other relevant regulations.
As regulations above, the Ho Chi Minh City Stock Exchange organizes trading for the following types of securities:
- Common stocks;
- Closed-end funds;
- Exchange-traded funds (ETFs);
- Bonds;
- Warrants;
- Other types of securities after obtaining the approval of the State Securities Commission (SSC).
Best regards!
