HNX Issues New Securities Transaction Regulations

The General Director of the Hanoi Stock Exchange (HNX) recently signed the Decision No. 54/QD-SGDHN to adopt the Regulation on Securities Transactions on the Hanoi Stock Exchange. The new ruling specifies general and specific regulations on organisation and management of securities transaction, share transaction, listed bond transaction, and special transactions as well as provisions on warning, supervision and transaction suspension of a listed securities.

 

Compared with the old regulations, the new version amends, supplements, and specifies basic contents as follows: Supplementing public bidding and correcting transactions; supplementing the case that system faults lead to temporary transaction suspension. HNX bases on the troubleshooting to decide upon the acceptance and rejection of transactions. In addition, the exchange adds odd-lot share trading (from 1 share to 99 shares) on the system by means of negotiation method.

 

HNX also provides regulations on ceiling or floor determining method in the special case of reference price. In case ceiling and floor prices equal to their reference price, the adjusted ceiling price is equal to the reference price plus one tick size and the adjusted floor price is equal to the reference price minus one tick size. In case the reference is equal to VND100, the adjusted ceiling price is equal to the reference price plus one tick size and the adjusted floor price is equal to the reference price.

 

Besides, HNX applies the reference price determining method on the base price of the latest trading day. In particular, the base price is weighted price of all orders traded in the continuous matching method in the last 15 minutes of the trading day. Previously, the reference price is the weighted price of all traded orders throughout the day. The exchange also stipulates treasury share trading. The upper and lower limit of treasury share buying and selling of issuing organisations fluctuates in a half band applied to ordinary shares in the day. Specifically, the collar [price movement band] of ordinary shares is 7 percent a day and the band applied to treasury share trading is 3.5 percent on the either side of preference price.

 

Besides, listed organisations are not allowed to arbitrarily change intentions or plans of share buyback or treasury share sale as registered to operators and published to the public. In case of force majeure, they shall report to the State Securities Commission of Vietnam (SSC) three days ahead of changes. They must announce the reason on mass media and report to HNX within 24 hours since the changes to repurchase and sale plans.

 

The new regulations, which take effect from March 26, 2012, will facilitate market members and better serve the demand of investors. HNX has completed preparations like technical infrastructure, testing with member companies for the new launch.