HOSE Transaction Regualtion
- Trading hours
Transaction method User command Trading Hours 09h00 – 09h15 ATO, LO Opening periodic order-matching 09h15 – 11h30 LO, MP Continuous order-matching 11h30 – 13h00 Intermission 13h00 – 14h30 LO, MP Continuous order-matching II 14h30 – 14h45 ATC, LO Closing periodic order-matching 09h00 – 15h00 Put-through - Order matching methods
Periodic order matching: A method of trading made on the basis of matching buy and sell orders at a specified time. The principle of price determination is as follow
The executed price reaches the largest trading volume
If more than one price satisfies the above condition, the price which is similar or closest with nearest matching order price will be selected.
Continuous order matching: The method is made on the basis of comparing buy orders and sell orders immediately when they are inputted into the trading system.
Put-through: A transaction method whereby members agree with each Matching principles: - Matching Principles
Price Priority: Buy orders with higher prices are prioritized for execution first. Sell orders with lower prices are executed first.
Time Priority: In case buy or sell orders at the same price, those which entered into the trading system earlier will take precedence in execution. - Trading unit and Price tick
Trading unit: Trading unit of order matching in parity lot: = 10 shares/closed-end fund certificates.
Maximum trading volume per order is 500,000 shares/closed-end fund certificate
Trading volume of put through transactions: 20,000 shares/closed-end fund certificates or more
No trading unit applied for put through transactions
Trading stocks with volume from 01 to 09 stocks (odd lots): Kis will support the repurchase from the first day of the month with 90% the reference price according to the list of purchasing companies
Price tick:
Price Level (VND) Price tick (VND) < 10,000 10 10,000 – 49,950 50 >= 50,000 100 - Price range: ± 7%
Price:
Ceiling price = Reference price x (100% + Price range)
Floor price = Reference price x (100% – Price range)
For stock and certificates, on the first trading day, the trading price is fluctuated within +/- 20% of the expected trading price.
For stocks, fund certificates, which are traded again after the suspension of trading for more than 25 days, the price fluctuation range in the first trading day is +/- 20% compared to the reference price in the first day traded back.
Closing price on the first trading day after being resumed will be the reference price for the next trading day. The 7% price range is applied for the next trading day. - Type of orders
Order which is executes at the opening order matching price (ATO): ATO is buy or sell order that is to be matched at the opening price.
ATO orders receive higher priority than limit orders when comparing to match
Periodic order matching session will determine the opening price if there is only ATO order on the order book
ATO orders are entered into the trading system in time for Periodic order matching to determine the opening price and will be automatically cancelled at the end of the opening session if they are not executed or partially matched.
Limit order (LO): Is a buy or sell order at a specified price or better. The order is valid from the time it is entered into the trading system until the end of the trading day or until the order is canceled.
Order which is executed at the closing order matching price (ATC): Similar to the ATO order but applied in time for periodic order matching to determine the closing price.
Market order (MP):
Is buy/sell order to be executed at lowest offer price/ highest bid price.
Once inputting into the trading system, the MP sell order will be immediately executed at the lowest offer price and the MP buy order will be immediately executed at the highest bid price. In case the MP order is not fully matched, the MP order will be considered as buy order at a higher price or sell order at lower price and continue to match
If the MP order is executed partially, the remaining volume of the MP buy order and the MP sell order will be changed to next higher price unit and next lower price unit respectively compared to the last executed price
If the last executed price is limit up price/limit down price, the MP order will be changed to limit order at limit up price/ limit down price.
The MP order is valid in continuous order-matching session only
The MP order will be automatically cancelled if there is no corresponding limit order at the time the MP order is input into the trading system
The MP orders of foreign investors will be automatically cancelled if the Foreign Owner ship Limited (FOL) of the certain stock is no longer available. - Cancellation of orders
In periodic order matching session: Investors are not allowed to cancel orders in opening periodic order matching session time & are not allowed to cancel orders in closing periodic order matching session time (including orders in previous continuous order matching session)
In continuous order matching session: Investors are allowed cancel unmatched or partially filled orders during continuous order matching session. - Payment time
Transaction type Payment Time Order-matching T + 2 Put-through T + 2 In case of expiry of warrants:
If investors hold to maturity warrants, warrants are automatically paid if the state interest.
Payment time: E + 5 (E: expiry date of warrants)
Payment method: In cash
Method: Allocated directly to securities accounts - Transactions of foreign investor
In the time of order matching trading:
Buying volume of shares and closed-end fund certificates will be deducted from the number available for a foreign investor to buy immediately after the buy order is executed.
Selling volume of shares and closed-end fund certificates foreign investors will be added to the number available for foreign investors to buy right after the settlement (T+3).
Buy orders or remaining part of partially-filled buy orders of foreign investors will be automatically cancelled if they are not executed when inputted into the trading system or ownership limit for foreigners is hit
In the time of put through trading:
Total number of shares available for foreign investors to buy will remain unchanged if the transaction is negotiated between two foreign investors.
