The trading forms in government debt instruments in Vietnam
What are regulations on the trading forms in government debt instruments in Vietnam? Thank you.
The trading forms in government debt instruments in Vietnam (Image from the Internet)
The trading forms in government debt instruments are specified in Article 17 of Circular 30/2019/TT-BTC providing guidance on registration, depositing, listing, trading and settlement of government debt instruments, government-guaranteed bonds issued by banks for social policies and municipal bonds (effective from July 15, 2019), as follows:
1. Debt instrument transactions executed on the Stock Exchange in two forms, including electronic put-through and common put-through.
2. Electronic put-through is a type of transaction in which the trading order is placed with firm commitment and shall be executed as soon as there is a partner without reconfirmation; Transactions executed by employing the electronic put-through method must adhere to the following principles:
a) Market electronic put-through method: The trading representative of a trading member shall input buy/sell orders with firm commitment to the trading system and select corresponding orders for executing transactions. Contents of buy/sell orders with firm commitment are provided for in the Stock Exchange's procedures for trading of debt instruments.
b) Selective electronic put-through method: The trading representative of a trading member shall, based on quotation request orders on the trading system, send buy/sell orders with firm commitment to identified partners who send quotation request orders and will subsequently select appropriate buy/sell orders for executing transactions. Contents of quotation request orders are provided for in the Stock Exchange's procedures for trading of debt instruments.
3. Common put-through is a type of transaction in which the parties negotiate with each other about trading conditions by messaging on the trading system or by other communication channels and entering the results to the trading system for transaction establishment. Transaction results must be reported and input to the trading system in accordance with the Stock Exchange’s regulations thereon upon the approval from SSC.
After successful negotiation, a transaction in the form of common put-through shall become effective when the trading order is input into the trading system by the buyer or seller and confirmed by the corresponding counterparty. Contents of transaction reports are provided for in the Stock Exchange's procedures for trading of debt instruments.
4. The Stock Exchange may decide to change or adopt additional trading forms upon the approval from SSC.
Above is advice on the trading forms in government debt instruments. For more detailed information, you can refer to Circular 30/2019/TT-BTC. We hope that our advice will help you.
Best Regards!
