Pursuant to …;

REGARDING THE ISSUANCE OF THE SECURITIES TRADING REGULATIONS AT THE HO CHI MINH CITY SECURITIES EXCHANGE CENTER

DIRECTOR OF THE SECURITIES EXCHANGE CENTER HO CHI MINH CITY

On the basis of the Securities Law No. 70/2006/QH11;
On the basis of Decree No. 14/2007/NĐ-CP dated January 19, 2007 of the Government detailing the implementation of certain provisions of the Securities Law;
With the approval of the State Securities Commission.

DECISION:

Article 1. Attached to this Decision are the Securities Trading Regulations at the Ho Chi Minh City Securities Exchange Center.

Article 2. This Decision takes effect from the date of signature.

Article 3. The Head of the Administrative Department, Heads of Departments under the Ho Chi Minh City Securities Exchange Center, and related parties are responsible for implementing this Decision.

 

 

REGULATIONS

SECURITIES TRADING AT THE HO CHI MINH CITY SECURITIES EXCHANGE CENTER
(Issued together with Decision No. 25/QD-TTGDHCM dated April 17, 2007, of the Director of the Ho Chi Minh City Securities Exchange Center)

PART I

GENERAL PROVISIONS

Article 1. Scope of application

These regulations govern securities trading activities on the Ho Chi Minh City Securities Exchange Center (hereinafter referred to as "Ho Chi Minh City Securities Exchange Center" or "TTGDCK TP.HCM").

Article 2. Explanation of terms

In these regulations, the following terms are understood as follows:

Member conducting transactions at the Ho Chi Minh City Securities Exchange Center is a securities company approved by the Ho Chi Minh City Securities Exchange Center to become a member conducting transactions (hereinafter referred to as "member").

Trading system Trading system

Order transmission system is the system that implements the transfer of investors' trading orders from members to the Ho Chi Minh City Securities Exchange Center.

Price fluctuation range is the limit of price fluctuation of securities within a trading day, calculated as a percentage (%) relative to the reference price.

Reference price illuminating (if necessary) is the price level serving as the basis for the Ho Chi Minh City Securities Exchange Center to calculate the daily price fluctuation limit for securities.

Execution price is the price of securities determined from the result of matching orders or formed from negotiated transactions.

Opening price is the price executed at the first match of orders in the trading day.

Closing price is the price executed at the last match of orders in the trading day. In case there is no execution price on the trading day, the closing price will be determined based on the closing price of the nearest previous trading day.

Terminal Station Input and output devices used to receive or transmit information.

TRANSACTION AGENT of the Ho Chi Minh City Securities Exchange Center is an employee appointed by the member and granted a trading representative card by the Ho Chi Minh City Securities Exchange Center.

Chapter II

ORGANIZATION AND MANAGEMENT OF TRADING

Article 3. General Rules

The Ho Chi Minh City Securities Exchange Center organizes trading for the following types of securities:

3.1.1. Shares;

3.1.2. Securities investment fund certificates;

3.1.3. Bonds;

3.1.4. Other types of securities after obtaining the approval of the State Securities Commission.

The Securities Depository Center assigns stock codes for listed securities at the Ho Chi Minh City Securities Exchange Center based on coordination with the character allocation table of the Ho Chi Minh City Securities Exchange Center.

Listed securities at the Ho Chi Minh City Securities Exchange Center shall be traded through the exchange's trading system, except for the following cases:

Odd-lot trading;

Public tender offer;

Auction sale of state-owned shares at listed organizations;

Gift, inheritance...;

Post-trade error correction trading;

Other cases as stipulated by the Ho Chi Minh City Securities Exchange Center.

The Ho Chi Minh City Securities Exchange Center issues specific trading procedures on its trading system based on the provisions of these regulations.

Upon the request of a member, the Ho Chi Minh City Securities Exchange Center will consider and grant terminal stations to members for entering orders into the trading system. The Ho Chi Minh City Securities Exchange Center may reclaim terminal stations already granted to members or require members to cease using them. The circumstances for reclaiming or requiring members to stop using terminal stations are specified by the Director of the Ho Chi Minh City Securities Exchange Center.

Only trading representatives of members are allowed to enter orders into the trading system. The activities of trading representatives must comply with these trading regulations and relevant regulations of the Ho Chi Minh City Securities Exchange Center regarding trading representatives.

Members are responsible for the performance of their trading representatives' duties.

Article 4. Trading Time

The HCMC Stock Exchange organizes securities trading from Monday to Friday each week, except for days off as stipulated in the Labor Code.

Specific trading hours shall be decided by the Director of the HCMC Stock Exchange after obtaining approval from the Securities Commission.

The Director of the HCMC Stock Exchange may change trading hours in necessary cases after obtaining approval from the Securities Commission.

Article 5. Suspension of Securities Trading

The HCMC Stock Exchange suspends securities trading operations in the following cases:

The trading system of the HCMC Stock Exchange encounters technical issues;

When one quarter (1/4) or more of the members of the HCMC Stock Exchange experience system order transmission issues;

When events occur that affect normal market trading activities such as natural disasters, fires, etc.;

The Securities Commission requests a halt in trading to protect the market.

Trading operations resume immediately after the events mentioned in Clause 5.1 are resolved. In cases where recovery is not possible, the trading session ends at the last matched order.

The HCMC Stock Exchange may base its decision on specific circumstances to adjust trading times accordingly and announce such changes.

The HCMC Stock Exchange must immediately report to the Securities Commission about the suspension and adjustment of trading times.

Article 6. Trading Methods

The HCMC Stock Exchange organizes securities trading through the trading system using two methods:

Order Matching Method:

The Order Matching Method includes Periodic Order Matching and Continuous Order Matching.

Periodic Order Matching: This is a trading method implemented by the trading system based on matching buy and sell orders of customers at a specified time. The principle for determining the execution price in the Periodic Order Matching method is as follows:

It is the price that achieves the largest trading volume;

If there are multiple prices satisfying the above point, the price that matches or is closest to the execution price of the most recent order match will be selected;

If there are still multiple prices satisfying the above point, the higher price will be chosen.

The Periodic Order Matching method is used to determine the opening and closing prices of securities in the trading session.

Continuous Order Matching: This is a trading method implemented by the trading system based on matching buy and sell orders immediately upon entry into the trading system.

Negotiation Method: This is a trading method in which members negotiate trading conditions among themselves and have their trading representatives enter the information into the trading system for record.

Shares and investment fund certificates are traded using the Order Matching and Negotiation methods.

Bonds are traded using the Negotiation method.

The HCMC Stock Exchange decides to change the trading method for each type of security after obtaining approval from the Securities Commission.

Article 7. Principles of Order Matching in Trading

The trading system matches buy and sell orders of securities according to the principles of price priority and time priority as follows:

Price Priority:

Buy orders with higher prices are given priority for execution;

Sell orders with lower prices are given priority for execution;

Time Priority: In cases where buy or sell orders have the same price, the order entered into the trading system earlier will be given priority for execution.

Article 8. Trading Units and Quotation Units

Trading units are defined as follows:

The Director of the Ho Chi Minh City Stock Exchange shall define even-lot trading units and large-volume trading units after obtaining approval from the Securities Commission.

Quotation units are defined as follows:

Quotation units for the matching trading method shall be defined by the Director of the Ho Chi Minh City Stock Exchange after obtaining approval from the Securities Commission;

There is no provision for quotation units for the negotiated trading method.

Article 9. Price Fluctuation Range

The Director of the Ho Chi Minh City Stock Exchange shall define the price fluctuation range for stocks and investment fund certificates on the trading day after obtaining approval from the Securities Commission.

The price fluctuation range does not apply to bond transactions.

The price fluctuation range for stocks and investment fund certificates is determined as follows:

Maximum Price (Price Ceiling) = Reference Price + (Reference Price x Price Fluctuation Range)

Minimum Price (Price Floor) = Reference Price - (Reference Price x Price Fluctuation Range)

The price fluctuation range defined in Clause 9.1 of this Article does not apply in the following cases:

The first trading day of newly listed stocks and investment fund certificates;

Stocks and investment fund certificates that resume trading after being suspended for more than 30 days;

Other cases as decided by the Ho Chi Minh City Stock Exchange.

Article 10. Reference Price

The reference price of stocks and investment fund certificates currently traded is the closing price of the most recent trading day.

The closing price of stocks and investment fund certificates on the trading day is the execution price in the periodic matching session to determine the closing price of the trading day. If there is no matching price in the periodic matching session to determine the closing price, the last transaction price of the stocks and investment fund certificates on that trading day will be considered as the closing price of those stocks and investment fund certificates.

In the case of newly listed stocks and investment fund certificates, on the first trading day, the reference price is determined according to the provisions of Article 11 of this Regulation.

In the case where securities are suspended from trading for more than 30 days and then resume trading, the reference price is determined similarly to the provisions of Clause 10.3 of this Article.

In the case of trading securities without dividends and accompanying rights, the reference price on the non-dividend entitlement date is determined based on the principle of adjusting the closing price of the most recent trading day according to the dividend value received or the value of accompanying rights.

In the case of stock splits or consolidations, the reference price on the resumption of trading day is determined based on the principle of adjusting the closing price of the trading day before the split or consolidation according to the split or consolidation ratio.

In certain necessary cases, the Ho Chi Minh City Stock Exchange may apply other methods to determine the reference price after obtaining approval from the Securities Commission.

Article 11. Determining the Price of Newly Listed Stocks and Investment Fund Certificates

The Ho Chi Minh City Stock Exchange defines the determination of the price of newly listed stocks and investment fund certificates on the first trading day as follows:

The listing organization and the listing advisory organization (if any) must propose a forecasted trading price to serve as the reference price on the first trading day.

The price fluctuation range on the first trading day is +/-20% compared to the forecasted trading price.

Trading Method:

The Ho Chi Minh City Stock Exchange only allows limit orders and single matching according to the periodic matching method.

If there is no matching price in the periodic matching session to determine the opening price, additional orders can be accepted in the subsequent periodic matching session.

The matching price on the first trading day will be the reference price for the next trading day. The price fluctuation range will be applied from the next trading day.

If within the first three trading days, newly listed stocks and investment fund certificates still do not have a reference price, the listing organization must re-determine the forecasted trading price.

Article 12. Trading Orders

Limit Order: Is an order to buy or sell securities at a specified price or better.

A limit order is effective from the time it is entered into the trading system until the end of the trading day or until it is canceled.

An order to buy by foreign investors entered into the system during the periodic matching period for determining the opening price or closing price, if not matched or only partially matched at the time of the opening price or closing price determination, will be automatically canceled.

An order to buy by foreign investors entered into the system during continuous matching, if not matched or only partially matched, will be automatically canceled.

Market Order (abbreviated as MP):

Is an order to buy securities at the lowest selling price or to sell securities at the highest buying price currently available on the market.

If, after matching according to the principle in point 12.2.1, the quantity of the market order has not been fully executed, the market order will be considered as an order to buy at the next higher selling price or to sell at the next lower buying price currently available on the market.

If the quantity of the market order remains after trading according to the principle in point 12.2.2 and cannot continue to be matched, the market order will be converted into a limit order to buy at a price one price step higher than the last transaction price before that or a limit order to sell at a price one price step lower than the last transaction price before that. In case the final execution price is the ceiling price for a buy market order or the floor price for a sell market order, the market order will be converted into a limit order to buy at the ceiling price or a limit order to sell at the floor price.

Unexecuted foreign investor market orders will be automatically canceled.

Members may not enter market orders into the trading system without corresponding limit orders for those securities.

Market orders are entered into the trading system during continuous matching periods.

Order to trade at the matching price for determining the opening price (abbreviated as ATO):

Is an order to place a buy or sell order for securities at the opening price.

The ATO order takes precedence over limit orders when matching orders.

The ATO order is entered into the trading system during the periodic matching period to determine the opening price and will be automatically canceled after the opening price determination time if the order is not executed or not fully executed.

Order to trade at the matching price for determining the closing price (abbreviated as ATC):

Is an order to place a buy or sell order for securities at the closing price.

The ATC order takes precedence over limit orders when matching orders.

The ATC order is entered into the trading system during the periodic matching period to determine the closing price and will be automatically canceled after the closing price determination time if the order is not executed or not fully executed.

Article 13. Content of Trading Orders

Limit Order entered into the trading system includes the following contents:

Buy order, sell order;

Security code;

Quantity;

1. Price;

2. Investor's account number;

3. Trading order symbol according to the regulations of the Ho Chi Minh City Stock Exchange.

4. Order to trade at the matching price for determining the opening price of securities entered into the trading system has the content like a limit order, but does not record the price but records as ATO.

5. Order to trade at the matching price for determining the closing price of securities entered into the trading system has the content like a limit order, but does not record the price but records as ATC.

6. Market Order entered into the trading system has the content like a limit order but does not record the price but records as MP.

Article 14. Trading Order Symbols

Trading order symbols for orders entered into the trading system include:

Article 15. Modification and Cancellation of Orders for Matching Transactions

1. During periodic matching time:

a. It is strictly prohibited to cancel trading orders placed within the same periodic matching session. Only original orders or remaining parts of original orders that have not been executed in the previous periodic or continuous matching sessions may be cancelled.

b. Trading representatives are permitted to modify trading orders when they enter customer trading orders incorrectly but must present the original order and obtain approval from the Ho Chi Minh City Stock Exchange (TTGDCK TP.HCM). The modification of trading orders only takes effect if the original order has not been executed or if the remaining part of the original order has not been executed. Trading member transaction modifications during trading time must comply with the Trading Order Modification Procedures issued by TTGDCK TP.HCM.

2. During continuous matching time, if customers request or if trading members enter incorrect information about the original order, trading representatives are allowed to modify or cancel orders if the order or the remaining part of the order has not been executed, including orders or remaining parts of orders that have not been executed in the previous periodic or continuous matching sessions.

3. In cases where the investor account number is modified, the priority order of the order remains unchanged compared to the original order.

In cases where other information of the trading order is modified, the priority order regarding time after modification is calculated from the time the correct order is entered into the trading system.

Article 16. Advertising Agreed Transactions

1. During agreed transaction time, trading representatives of Members can enter advertising buy-sell securities orders according to the agreed transaction method on the trading system.

2. The content of advertising agreed transactions entered by trading representatives on the trading system includes:

a. Security code;

b. Advertising price;

c. Volume;

d. Buy or sell bid;

đ. Contact phone number.

Article 17. Execution of Agreed Transactions

1. During agreed transaction time, stocks and investment fund certificates are traded in large lots.

2. Agreed transactions of stocks and investment fund certificates must comply with the daily price fluctuation range regulations and do not need to follow the listing price unit regulations.

3. Agreed transactions by buying and selling members must be entered into the trading system according to the Agreed Transaction Trading Procedures issued by TTGDCK TP.HCM.

Article 18. Modification and Cancellation of Agreed Transactions

1. Agreed transactions on the trading system cannot be canceled.

2. In case trading representatives enter agreed transactions incorrectly, trading representatives are allowed to modify agreed transactions but must present the customer's original order, must obtain the counterpart's consent to modify, and must obtain approval from TTGDCK TP.HCM for the modification of agreed transactions. Trading member modifications of agreed transactions must comply with the Trading Order Modification Procedures issued by TTGDCK TP.HCM.

Article 19. Correcting Errors After Transactions

After the completion of a transaction, if a member discovers a transaction error due to mistakes or confusion during the receipt of orders, transfer, or entry of orders into the trading system, the member must report the transaction error to the Ho Chi Minh City Stock Exchange (HCMCSE) and bear responsibility for resolving the error with the customer. The correction of errors after transactions by members must comply with the Post-Transaction Error Correction Procedures issued by the HCMCSE and the Securities Depository Center.

Article 20. Establishment and Cancellation of Transactions

1. A securities transaction is established when the trading system executes matching buy and sell orders through the order-matching method or records the transaction through the negotiation method, except where otherwise provided by the HCMCSE.

The buyer and seller members are responsible for ensuring payment obligations for established securities transactions.

2. In cases where an established transaction significantly affects investors' rights or the entire market, the HCMCSE may decide to correct or cancel such transactions.

Article 21. Control of Foreign Investor Securities Transactions

1. During the order-matching trading period, the trading system controls and announces the volume of shares and investment fund certificates that foreign investors are permitted to purchase based on the principle that:

a. The volume of shares and investment fund certificates purchased by foreign investors is deducted from the permissible purchase volume immediately after the purchase order is executed; the volume of shares and investment fund certificates sold by foreign investors is added back to the permissible purchase volume immediately after the transaction settlement is completed.

b. An unexecuted or partially executed purchase order for shares or investment fund certificates by a foreign investor will be automatically canceled if the permissible purchase volume has been exhausted, and subsequent entry of the purchase order into the trading system will not be accepted.

c. During the negotiation trading period, the trading system controls and announces the volume of securities that foreign investors are permitted to purchase based on the principle that:

2. The permissible purchase volume of securities for foreign investors will decrease immediately after the execution of a negotiated transaction if it involves a foreign investor purchasing from a domestic investor selling.

3. The permissible purchase volume of securities for foreign investors will increase immediately after the completion of the transaction settlement if it involves a foreign investor selling to a domestic investor purchasing.

4. The permissible purchase volume of securities for foreign investors will remain unchanged if the negotiated transaction is between two foreign investors.

Article 22. Securities Transactions of Investors

1. An investor can only have one securities trading account and must open it at one securities company. The investor's account must comply with the Account Number Assignment Regulations for Investors issued by the HCMCSE. Members are responsible for retaining trading documents, information about securities transactions of assigned accounts, information about account holders, and the opening and closing dates of accounts.

2. An investor is not allowed to simultaneously place both buy and sell orders for the same type of shares or investment fund certificates on the same trading day.

3. When placing a sell order for securities or advertising the sale of securities (or placing a buy order for securities or advertising the purchase of securities), the balance of securities (cash balance) in the customer's account opened at the member must meet the margin requirements for securities (cash).

Article 23. Stock Trading of Treasury Shares

1. In each trading day, the listed organization may only place orders to repurchase or sell treasury shares with a minimum volume of 3% and a maximum volume of 5% of the permitted volume stated in the registration form submitted to the Ho Chi Minh City Stock Exchange.

2. In special cases, if the listed organization wishes to trade at a volume exceeding 5% of the permitted volume stated in the application or to conduct large block trades through negotiated transactions, it must obtain the approval of the Ho Chi Minh City Stock Exchange, but the repurchase volume shall not exceed 10% of the trading volume of that stock on the trading day immediately preceding the proposed trading day for treasury shares.

3. The price at which the listed organization places an order to repurchase shares on the trading day shall not be higher than the reference price plus three quotation units. The price at which the listed organization places an order to sell treasury shares on the trading day shall not be lower than the reference price minus three quotation units.

Article 24. Trading Symbols for Non-Cumulative Rights

1. On non-cumulative rights trading days, the Ho Chi Minh City Stock Exchange will publish the following trading symbols on the trading system for stocks and investment fund certificates:

a. "XD": Trading without dividend entitlements;

b. "XR": Trading without subscription rights for additional shares or investment fund certificates issued to existing shareholders;

c. "XA": Trading without dividend entitlements and subscription rights for additional shares or investment fund certificates issued to existing shareholders on the same day.

2. On non-cumulative rights trading days, the Ho Chi Minh City Stock Exchange will publish the following trading symbol on the trading system for bonds:

"XI": Trading without bond interest entitlements.

Chapter III

REGULATIONS ON MONITORING, SUSPENDING, AND DELISTING OF LISTED SECURITIES

Article 25. Monitoring of Listed Securities Trading

1. When securities are subject to monitoring according to the provisions of Article 16 of the Listing Regulations for Securities on the Ho Chi Minh City Stock Exchange, the Ho Chi Minh City Stock Exchange will mark the securities with the monitoring symbol "C" on the trading system.

2. If the securities are no longer subject to monitoring according to the provisions of Clause 2 of Article 16 of the Listing Regulations for Securities on the Ho Chi Minh City Stock Exchange, the Ho Chi Minh City Stock Exchange will remove the monitoring symbol "C" from the securities on the trading system.

Article 26. Suspension of Listed Securities Trading

1. The Ho Chi Minh City Stock Exchange may decide to suspend trading of a type of security when events specified in Article 17 of the Listing Regulations for Securities on the Ho Chi Minh City Stock Exchange occur.

2. In cases where the suspension of trading does not exceed one (01) trading session, the trading suspension symbol on the trading system is "H".

3. In cases where the suspension of trading lasts two (02) trading sessions or more, the trading suspension symbol on the trading system is "SP".

4. Securities suspended from trading will be allowed to resume trading by the Ho Chi Minh City Stock Exchange after meeting the requirements specified in Clause 2 of Article 17 of the Listing Regulations for Securities on the Ho Chi Minh City Stock Exchange.

Article 27. Delisting of Securities

In cases where securities are subject to voluntary delisting according to the provisions of Article 13 or mandatory delisting according to the provisions of Article 14 of the Listing Regulations for Securities on the Ho Chi Minh City Stock Exchange, the Ho Chi Minh City Stock Exchange will implement the delisting of such securities on the trading system.

Chapter IV

IMPLEMENTATION

Article 28. Implementation Provisions

1. The Ho Chi Minh City Stock Exchange shall supervise the compliance with this Regulation by trading members.

2. The Ho Chi Minh City Stock Exchange shall be responsible for establishing working regulations and business procedures consistent with the provisions of this Regulation.

3. Any amendments to this Regulation shall be decided by the Director of the Ho Chi Minh City Stock Exchange after obtaining the approval of the Securities Commission.