Implementation of Securities Transactions According to the New Draft Circular

Implementing securities transactions according to the new Draft Circular (illustrative image)

Securities transactions are regulated in the Draft Circular guiding transactions in the securities market as follows:

First, investors must have sufficient margin assets (cash or securities) as per legal regulations on securities transaction clearing and settlement before trading. Clearing member securities companies must ensure that investors have sufficient margin assets before entering orders into the trading system. In cases where the securities company is not a clearing member, it may only enter orders into the system upon confirmation from the clearing member that the investor has sufficient margin assets as regulated.

Second, except for intraday trading, investors may only place sell orders for securities that are permitted to be traded and are available in the investor's depository account on the trading day and pending securities.

Third, investors are not allowed to place simultaneous buy and sell orders for the same type of securities during the same periodic match session, except for orders that were entered into the system during the previous continuous trading session and remain unmatched but still valid.

Fourth, when placing both buy and sell orders for the same securities code on the trading day, investors must avoid a situation where their opposing orders for the same securities code match with each other to create fake demand and supply, manipulating securities prices.

Fifth, securities companies are responsible for regulating the placement of matching buy and sell orders in the same trading session by their investors to avoid the circumstance where an individual investor's opposing orders match each other in the same trading session.

Sixth, foreign securities companies are allowed to use brokerage trading accounts to simultaneously place buy and sell orders for the same securities code in each match session (periodic or continuous) or negotiated transactions, but must ensure that the buy and sell orders are not from the same foreign investor.

Finally, the securities company where the foreign securities company opens its brokerage trading account is responsible for cooperating with the foreign securities company to check, monitor transactions, and implement reporting, reconciling transactions for each foreign investor on the brokerage trading account.

See details in the Draft Circular guiding transactions in the securities market.

Long Binh

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE