Vietnam: In which circumstance may the Goods Exchange change temporarily the trading time?

Specifically, according to Decree No. 158/2006/NĐ-CP of Vietnam’s Government, the Goods Exchange shall announce specific trading time, including trading day, trading session, time of matching trading orders and opening and closing hours of the trading day. However, the Goods Exchange may change temporarily the trading time in the following circumstances:

- The trading system is out of order, making it impossible to normally execute trading orders;

- The trading order transfer systems of more than half of members are out of order;

- Force majeure circumstances specified by law.

Upon occurrence of the circumstances specified above, the Goods Exchange shall temporarily cease trading until those circumstances are redressed. If a circumstance cannot be redressed within a trading session, that trading session is considered closed at the preceding order matching.

Note: The Goods Exchange shall promptly announce circumstances specified above.

Besides, Decree No. 158/2006/NĐ-CP also specifies trading limits in goods purchase and sale through the Goods Exchange as follows:

- The total trading limit for a type of goods of all contracts within the trading time limit in a year must not exceed 50% of the total volume of such goods made in Vietnam in the preceding year.

- The trading limit of a member must not exceed 10% of the total trading limit specified above.

- The Goods Exchange may set specific trading limits compliant with the above provisions.

- In case of necessity to assure economic security and market stability, the Trade Minister may change the total trading limit applicable to each type of goods.

View more details at Decree No. 158/2006/NĐ-CP of Vietnam’s Government, effective from January 22, 2007.

Ty Na

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