What are regulations on limit order (LO) in listed securities transactions in Vietnam?

What are regulations on limit order (LO) in listed securities transactions in Vietnam?

Pursuant to Point a, Clause 2, Article 17 of the Regulation for Listing Securities and Trading of Listed Securities issued with Decision 17/QD-HDTV in 2022 stipulates as follows:

a) Limit order (LO):

- LO is an order to buy or sell a security at a specific price or better (a price higher than a specified price for a buy order or a price lower than a specified price for a sell order).

- LOs are allowed to be entered into the trading system during Continuous Order Matching Sessions and Periodic Order Matching Sessions.

- The LO is valid from the time it is entered into the trading system until the end of the Periodic Order Matching Sessions or until the order is rejected.

What are regulations on Market Price order (MP order) in listed securities transactions in Vietnam?

Pursuant to Point b, Clause 2, Article 17 of the Regulation for Listing Securities and Trading of Listed Securities issued with Decision 17/QD-HDTV in 2022, there are provisions as follows:

b) Market Price order (MP order) is an order to buy or sell a security at the market's current best available price (the lowest sell price or the highest buy price).

- MP orders are only entered into the trading system during Continuous Order Matching Sessions.

Types of MP orders:

- MP order is an order to buy or sell a security at the market's current best available price (the lowest selling price or the highest buying price). MP order will be cancelled if there is no counterpart order at the time of being entered into the trading system.  When there is a counterpart order, the MP order is executed according to the regulations for each type of MP order as follows:

- A Market to Limit order (MTL order) is an order that, if not fully executed, will have the remainder of the order converted into a LO to buy at a price one tick size unit higher than the last matching price or ceiling price if the last matching price is the ceiling price (for buy orders), or converted into a LO to sell at a price one tick size unit lower than the last matching price or the floor price if the last matching price is the floor price (for sell orders). MTL orders converted into LOs must comply with the regulations on modifying and canceling LOs.

- Match or Kill order (MOK) is the market order that will be immediately cancelled on trading system after being entered if it is not executed the whole.

- Match and Kill order (MAK) is market order that may be executed in whole or in part, the remainder of the order will be canceled immediately cancelled after being matched.

What are regulations on limit order (LO) in listed securities transactions in Vietnam? (Image from the Internet)

What are regulations on At the Open order (ATO) in Vietnam?

Pursuant to Point c, Clause 2, Article 17 of the Regulation for Listing Securities and Trading of Listed Securities issued with Decision 17/QD-HDTV in 2022, there are provisions as follows:

c) At the Open order (ATO) is an order to buy or sell securities with the trading system that records the execution price according to the following principles:

- If there are only ATO orders on the order book:

+ The execution price is the reference price if there are only ATO buy orders or ATO sell orders in the order book, or the total volume of buy orders equal to the total volume of seller orders.

+ The execution price is one tick size unit higher than the reference price if the total volume of buy orders is greater than the total volume of sell orders.

+ The execution price is one tick size unit lower than the reference price if the total volume of sell orders is greater than the total volume of buy orders. If lower than the floor price, the execution price will be determined as the floor price.

- If there are LOs on the order book:

+ The price of ATC buy orders is the highest of the following three prices: the highest buy price plus one tick size unit (if higher than the ceiling price, the execution price will be determined as the ceiling price), the counterparty's highest sell price, or the reference price.

+ The price of ATO sell orders is the lowest of the following three prices: the lowest sell price minus one tick size unit (if lower than the floor price, the execution price will be determined as the floor price), the counterparty's highest buy price, or the reference price.

ATO orders are entered into the trading system during the Periodical Order Matching Session to determine the opening price, and will be automatically cancelled after the opening price determination time if the orders are not executed or not fully executed.

ATO orders take precedence over limit orders (LO) during order matching.

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