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MoF orders to reduce trading lot on HoSE back to 10 shares

Update: July, 29/2021 - 08:15
Outside of the Hồ Chí Minh Stock Exchange (HoSE) in District 1, HCM City. Bnews/VNS Photo

HÀ NỘI — The Ministry of Finance (MoF) has sent a document to the State Securities Commission (SSC) on reviewing the measures to prevent overloading on the Hồ Chí Minh Stock Exchange. 

Since July 5, the new securities trading system has officially operated on the Hồ Chí Minh Stock Exchange (HoSE) and received positive feedback from the business community and investors. 

The order congestion problem has been basically solved, contributing to stabilising market sentiment, improving prestige and demonstrating the drastic direction and management of the ministry.

In order to further strengthen the role of securities market management and administration, the ministry requires the SSC to: 

(1) Direct securities companies, especially those with large brokerage markets, to report their information technology system infrastructure, ensuring a stable and smooth connection with HoSE's new trading system, as well as urgently review and solve existing issues to ensure the full operation of transaction features according to regulations. 

(2) Review to ensure the operation of the new trading system as soon as an official announcement allowing HoSE to receive new listing registration documents to be issued. 

Securities firms also have to support businesses wishing to move their listings from the Hà Nội Stock Exchange (HNX) to HoSE, especially those affected by congestion on HoSE. And urgently report the application of the 10 minimum trading lot to ensure the interests of investors. 

(3) Strengthen communication, promptly announce policies to stabilise market sentiment and improve the prestige in the direction and management of the MoF.

Previously, the massive influx of investors into the stock market led to overloading on HoSE since the end of 2020. During that period, HoSE had to apply a number of technical measures such as increasing the trading lot from 10 to 100 shares and fund certificates, temporarily changing the listing of some stocks from HoSE to HNX or limiting cancellation or correction of orders to limit order congestion, but the situation did not improve much. 

By early July, the new trading system supported by FPT was put into operation, thereby solving the long-standing congestion on HoSE. — VNS

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