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Official Gazette

Monday, December 11, 2017

State Securities Commission proposes shift to intra-day trading

Updated: 11:26’ - 16/06/2015

Investors would be allowed to buy and sell shares of the same company back and forth on the same trading day if a draft circular recently unveiled by the State Securities Commission is approved.

The draft, which is prepared to replace the Finance Ministry’s Circular No. 74/2011/TT-BTC of June 1, 2011, stipulates investors must use one account for buy/sell orders on a single share listing, but these orders must not be made simultaneously in a matching session.

Eligible shares for intra-day trading would include fund certificates and stocks in the VN30 and HNX30 baskets - the top 30 shares by market value and liquidity in the Ho Chi Minh City Stock Exchange and Hanoi Stock Exchange.

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Investors keep an eye on index fluctuation in the IRS stock exchange__Photo: VNA

 

Under the draft regulation, the quantity of securities placed for sale must not be higher than that of securities bought, including shares available in the investor's account, shares pending arrival in the account and shares purchased on the same day.

In addition, the total value of buying or selling transactions on the trading day for each investor must not surpass the level specified by the securities company.

The draft circular also stipulates strict conditions for securities brokers who are permitted to provide intra-day trading services.

Accordingly, a securities company must have an equity or charter capital of VND 800 billion (USD 36.7 million); full appropriate reserves to hedge share price declines; and a working capital ratio of at least 220 percent in the last 12 months and must not have incurred losses in the previous two years.

They must also not have undergone any process related to merger, consolidation or dissolution or have been placed under control, special control or suspension by a competent authority.

In another move, the State Securities Commission is also seeking public comments on its proposal to shorten the payment period from three days (T+3) to two days (T+2).-

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