1. Trading products

Stocks, ETFs, bond listed on HNX.

2. Trading hours

• Trading dates: Monday to Friday, except public holidays
• Trading hours: 9:00 – 15:00; Breaking time 11:30- 13:00

2. Trading method

a. Types of orders

– Limit order is an order to buy or sell securities at a predetermined price or better price.

A limit order shall be effective as from it is placed into the trading system until the close of the trading day or until the rescission of the order. LO can be modified (price, quantity) and cancelled with untraded order/part of an order.

– Market Oder (MP) is an order to buy or sell a stock at the best available price at the relevant time. The characteristics of MP:

• Market order is applied only to continuous order-matching session.
• Market order does not contain restrictions on the buying/selling price at the time of being put into the trading system.
• Market order will be cancelled if there is no corresponding order at the time of being entered into the trading system.
• Price of market order is the best price of corresponding order at the time of being entered into the trading system.

MP includes:

• Market to Limit (MTL) order is submitted as a market order to execute at the current best market price. If the order is only partially filled, the remainder of the order is canceled and re-submitted as a limit order.
  • MTL buy order will become a buy limit order with the limit price equal to the price at which the filled portion of the order executed. If the MTL price is the upper-limit price, the LO price will also be the upper-limit price.
  • MTL sell order will become a sell limit order with the limit price lower than the price at which the filled portion of the order executed. If the MTL price is the lower-limit price, the LO price will also be the lower-limit price.
• Market – fill or kill (MOK) order is an order to buy or sell a security that must be executed immediately in its entirety; otherwise, the entire order is cancelled; no partial fulfillments are allowed.
• Market – Fill And Kill – MAK) is an order to buy or sell that can be filled partially or canceled. The remainder of the order is cancelled immediately after the order is filled.

– ATC Order is an order to buy or sell securities at the price level at which orders are filled matched for determining the closing price. The characteristics of ATC order are:

• Only entered into the HNX trading system in the periodical order matching method
• No order price is required (only ATC price filled is needed)
• Given sequential precedence to limit orders

– PLO Order (after-hour order): PLO Order is a securities selling order or buying order at the closing price after the periodic order-matching session closes. PLO Order has the following features:

• PLO order is only put into the system in the after-hour session: From 2:45 pm to 3:00 pm. However, where the closing price is not determined in the continuous order matching session and periodic order matching session, PLO order will not be entered into the HNX system.
• The PLO order is matched immediately if there is an available counter order. The trading price is the closing price.
• The PLO order cannot be modified or canceled.
• When the after-hour session closes (at 3:00 p.m.), unexecuted or incomplete PLO orders will be automatically rescinded.

b. Trading method:

– Continuous order matching method: The method implemented on the basis of matching buying orders with selling orders immediately after being put into the trading system.

– Periodical order matching method: A transaction method executed by the trading system on the basis of matching securities buying and selling orders at a specific point of time.

– Negotiation: The method whereby members negotiate with each other on the transaction conditions, the trading result will be then placed into the trading system by member representatives for trade confirmation. (Bid/offer orders can be advertized through securities companies if members have not found corresponding partners)

* Note: Negotiation trading is not allowed on the first trade date of a stock or the resumed trade date of a stock that has been untraded for 25 consecutive trading days or more. This method is not allowed until the stock has a reference price – the weighted average of all executed prices by continuous order matching method of the previous trading day.

3. Order matching principles

– Price precedence: An order with the best price rate shall take precedence (Buying order of higher price/selling order of lower price shall take precedence.)

– Time precedence:

• Where multiple selling or buying orders are of the same price, the order that is first entered into the trading system shall take precedence.
• In the continuous order matching session, the exercise price shall be the price of order entered into the trading system earlier if sell order and buy order have the same price.

4. Quote unit and tick size

a. Quote unit

– Share, ETF certificates

• Board lot: A multiple of 100 share units, a quote unit for continuous order trading
• There is no quote unit in negotiation method. The volume for negotiation trading method is from 1 share/ETF certificate to 99 shares/ETF certificates or from 5,000 shares/ETF certificates onwards.
• Odd lot: Odd lot trading (from 01 share to 99 shares) can be performed in the continuous order trading session (applicable to odd-lot trading). Odd lot trading is not allowed on the first trade date of a stock or the resumed trade date of a stock that has been untraded for 25 consecutive trading days or more.

– Bond:

• Board lot: A multiple of 100 share units, a quote unit for continuous order trading
• There is no quote unit in negotiation method. The minimum value for negotiation method is VND100 billion on par value.
• Odd lot: Odd lot trading (from 01 share to 99 shares) is performed in the same way as shares traded in odd lot.

b. Tick size

Trading method	Share	ETF certificate
Continuous order matching	VND100	VND1
Negotiation	VND1	VND1

5. Reference price and collar

a. Reference price

– Reference price: The price of the very last traded order of a stock in the current date will be the reference price of such stock in the following trade date.

– Predetermined reference price of a share on the first trade date is proposed by issuing organization or at the advice of a consulting organization (if any) and approved by HNX. In case the reference price is not determined in the first three trading days, the issuing organization and consulting organization (if any) shall redefine the reference price thereof.

– Reference price is not adjusted in case the issuing organization issue convertible bond or issue additional shares [secondary equity offering] at higher price than the weighted price of shares traded on the previous trading day of the ex-rights day.

– In case the share is suspended trading for more than 25 trading days, the reference price on the first resumed trading day is determined by HNX and approved by SSC.

b. Collar

– Collar for a stock in a trading day is 10% to the either side of the reference price.

– Collar on the first trading or on the re-trading day of a stock (after 25 days or more untraded) is 30% to the either side of the reference price. This is also applied to dividend payment or stock split for outstanding shareholders or company split.

– Collar is not applicable to bond transactions.

– Ceiling/floor (upper-limit/lower-limit) price:

• Ceiling price = Reference price * (100% + Price collar)
• Floor price = Reference price * (100% – Price collar)

In case the collar (± 10%) is applied, the ceiling/floor price is equal to the reference price thereof. The price adjustment is made as follows:

• Adjusted ceiling price = Reference price + a tick size of price
• Adjusted floor price = Reference price – tick size of price

In case reference price is equal to VND100:

• Adjusted ceiling price = Reference price + a tick size of price
• Adjusted floor price = Reference price.

6. Order modification, cancellation in order-matching trading method

a. A modification or cancellation of an order is applied to an order or a part of an order which is not filled yet.

b. An LO order can be modified (price, quantity) or canceled during the trading time. The precedence of such order is determined from the time the modified order is entered into the trading system.

• The order of precedence is unchanged if the quantity is reduced.
• The order of precedence is applied to the order modified if the quantity is increased and/or the price is changed.

c. During the at-the-close (ATC) trading session at which orders are filled/matched for determining the closing price, LO and ATC orders cannot be cancelled/modified (including LO orders transferred from the the continuous order matching session.

7. Order modification, cancellation in negotiation trading method

a. An order is confirmed by the system is not allowed for cancellation

b. During the trading session, where an agent of a securities company enters wrong information in the negotiation order of an investor, such agent is allowed to modify the order but he/she must show the original order of the investor and he/she must have the approval for modification from the corresponding partner and approval of the HNX.

c. Modification procedures are set by the HNX.

d. PLO Order cannot be modified or canceled.

8. Negotiation order cancellation and modification

a. Confirmed negotiation transaction on the system cannot be cancelled.

b. In case the representative of the Securities Company inputs wrong negotiation transaction of the investor, he/she can modify the negotiation transaction but he/she must shows the original order of the investor and the modification must be accepted by the counterpart party and approved by the HNX.

c. The modification of negotiation transaction must be complied with the HNX Regulation to this effect.

9. Special transactions:

– Purchases and sales of treasury stocks and market-making transactions of member companies must be complied with the Circular 203/2015/TT-BTC of the Ministry of Finance.

– Transactions performed by majority shareholders, inside shareholders and related persons must be complied with the Law on Securities and the Circular 155/2015/TT-BTC of the Ministry of Finance.