User Guide

 GUIDELINES FOR INVESTORS PARTICIPATING IN THE SECONDARY MARKET FOR DEBT INSTRUMENTS AT HANOI STOCK EXCHANGE (HNX)

1. Trading Hours:
Trading takes place from Monday to Friday each week, except on public holidays as stipulated by the Labor Code and trading holidays as regulated by the authorities.

• Morning session: from 09:00 to 11:30;
• Break time: from 11:30 to 13:00;
• Afternoon session: from 13:00 to 14:45.

The time for agreements and reporting transactions not yet on the trading day in the debt instrument trading system is extended until 17:00. 

The trading hours at SSV and the time for reporting results into the HNX system may change according to HNX regulations.

2. Listed Debt Instruments include:

• Government bonds with a nominal term of more than one (01) year issued by the State Treasury;
• Treasury bills issued by the State Treasury with a nominal term not exceeding 52 weeks;
• Government-guaranteed bonds;
• Municipal bonds.

3. General regulations:
3.1 Type of transaction:

• Regular buying and selling transactions are transactions on the trading system in which one party sells and transfers ownership of the debt instrument to another party without any commitment to repurchase the debt instrument;
• Repurchase transactions are transactions on the trading system in which one party sells and transfers ownership of the debt instrument to another party, while also committing to repurchase and regain ownership of that debt instrument after a specified period at a predetermined price. Repurchase transactions include the sale transaction (Transaction 1) and the repurchase transaction (Transaction 2). In a repurchase transaction, the seller is understood to be the seller in Transaction 1, and the buyer is understood to be the buyer in Transaction 1.";
• Sell-buyback transactions (SBB) are transactions on the trading system that combine two regular buying and selling transactions at the same time with the same trading partner. This includes a sale transaction of the debt instrument (Regular Transaction 1) combined with a repurchase transaction of the same debt instrument (Regular Transaction 2) at a specified time in the future. In this case, the seller in Regular Transaction 1 is the buyer in Regular Transaction 2; simultaneously, the price, volume, and execution time of Regular Transaction 2 must be predetermined at the time of concluding the two transactions.";
• Securities borrowing and lending (SBL) refers to transactions in which the borrowing party borrows debt instruments and commits to return the borrowed debt instruments to the lending party after a specified period. Securities borrowing and lending transactions are conducted based on agreements between the parties and on the trading system at the Stock Exchange or on the securities borrowing and lending system at the Viet Nam securities depository and clearing corproration (VSDC). The involved parties negotiate and are responsible for matters related to the borrowing volume, borrowed assets, interest repayment, collateral, borrowing interest rates, and other terms, ensuring that these agreements fully comply with the legal regulations applicable to the parties involved in the transaction and the regulations of the Stock Exchange and the Viet Nam securities depository and clearing corproration (VSDC).

3.2. Other regulations

Buying and selling the same type of bond

The simultaneous buying and selling of a bond code in a trading session by an investor is only permitted in accordance with the regulations of the Ministry of Finance and when when such transactions involve the transfer of ownership of the traded bonds.

3.3 Transaction types
3.3.1. Electronic Put-through type

The electronic put-through includes the following types of orders

a) Market-wide electronic put-through orders

• Market-wide electronic put-through orders are buy and sell orders with a firm commitment that are effective on the day they are publicly announced on the system;
• Market-wide electronic put-through orders apply only to regular buying and selling transactions.

b) Optional electronic put-through orders: Include the following two types of orders

• Request for Quotation (RFQ) Order: This type of order is used for advertising purposes when the investor has not yet identified a trading partner. The RFQ order can be sent to one member, a group of members, or the entire market. If the customer does not specify otherwise, the RFQ order is sent to the entire market;
• Firm Quote Order: This type of order is used to respond to an RFQ order. The firm quote order can only be sent directly to the member who issued the RFQ order.

3.3.2. Regular Put-through type

a) The regular put-through includes the reporting order. The reporting  order is used to enter the transaction into the system when the parties have agreed on the transaction conditions;

b) The transaction results must be reported and entered into the trading system within 01 working day from the date the parties have agreed on the transaction. The information reported into the system includes: the time of concluding the transaction, the time of signing the contract, the time of executing the transaction (the time of transferring the debt instrument and settling the transaction), and other relevant information;

c) The time from the date of entering the results of regular buying and selling transactions into the system to the date of executing the transaction must not exceed three (03) working days."

3.4 Order Validity Period
a) The order is valid  from the time it is entered into the system until the end of the trading period or until the order is canceled.

b) For executed put-through orders that have not reached the trading date, the order is effective until the end of the trading day or until the order is canceled.

3.5.  Modify/Cancle put-through order

a) For put-through orders to be modified/cancelled without going through the Stock Exchange: Customers can request SSV to perform the modification/cancellation of the order without waiting for the Stock Exchange's approval in the following cases:

• The put-through order is in an unexecuted status;
• The future put-through order has not yet reached the transaction deadline or has not confirmed the agreement of the participating counterparties. Members/investors can modify all information except for buying/selling information, market information, and partner member information.

b) For same-day orders that have been executed, modification can only be made with the agreement of the participating counterparties, a reasonable reason for the correction, and approval from the Hanoi Stock Exchange. Members/investors can modify all information except for buying/selling information, market information, and partner member information. In cases where the established transaction severely affects the rights of investors or the entire market transaction, the Stock Exchange may decide to modify or cancel the transaction.

c) For Repurchase transaction (Repos), Sell-buyback transaction (SBB), Securities borrowing and lending transaction (SBL) that have been executed and have not yet reached the second payment deadline, the second transaction can be modified with the agreement of the participating counterparties, a reasonable reason for the modification, and approval from the Hanoi Stock Exchange. The content of the order modification includes: repos interest rate, repos term, interest rate on coupon interest (if any); equivalent bonds.

3.6. Payment time:

• The transaction date is the date the debt instrument is traded on the debt instrument trading system of the Stock Exchange;
• The payment date for the debt instrument is the date the buyer or seller of the debt instrument receives the debt instrument or the money;
•  The payment deadline for debt instrument transactions: T + 1 is the next working day after the transaction date:
  • For regular buy/sell orders: there is one payment date which is T + 1 of the debt instrument transaction date on the trading system of the Stock Exchange;
  • For repurchase (repos) and lending (SBL) orders, there will be two payment dates: the first payment date is T + 1 of the first transaction date on the debt instrument trading system of the Stock Exchange; the second payment date is T + 1 of the second transaction date on the debt instrument trading system of the Stock Exchange.

4. Steps to Perform
Step 1: Check the cash balance and securities balance before placing a trade order to avoid invalid orders:

• For buy orders, customers must ensure sufficient cash balance.
• For sell orders, customers must ensure sufficient quantity of securities to sell.

Step 2: Customers place orders:

Order slip: Use the order slip template of SSV. Fill in all the information on the order slip accurately, including:

• Order slip: select buy/sell/cancel/modify order (Note: for cancel/modify orders, clearly state the original order number that needs to be canceled/modified)
• Type of transaction:
  • Regular transaction
  • Repurchase transaction
  • Sell-buyback transaction
  • Securities borrowing and lending transaction
• Date: the date of the order request
• Personal information: Full name; trading account number; sign and write the full name below the signature.
• Order type: Select one of the following order types:
  • Electronic put-through
  • Regular put-through
• Bond/Treasury bill transaction information:
  • For regular transactions: Bond/Treasury bill code, volume, quoted price, execution price, total amount (execution price * quantity).
  • For repurchase transactions: Government bond/Treasury bill, volume, quoted price, repurchase term, transaction start date, risk hedging ratio, interest rate, coupon rate.
• Partner information:
  • Same member: Customer name, trading account number.
  • Different member: Company name, partner member code.
• In case of order cancellation: The above information and the order number must be from the original order being canceled.
• In case of order modification: The above information is the information to be modified. Submit the order slip to the SSV trading staff at the trading counter from 9:00 AM to 2:30 PM, depending on the customer's trading needs

Step 3: CS’s staff checks the validity of the order.

• If the customer's order is invalid (missing information, incorrect information, or insufficient funds, insufficient securities), the CS’staff informs the customer of the invalid content by notifying directly at the trading counter or by phone and requests the customer to provide a replacement order slip;
• If the customer's order is valid, the CS’s staff enters the order according to regulations.

Step 4: Receive order matching results

• The time for updating order matching results is from 9:00 AM to 2:45 PM.
• Methods of receiving transaction results: Directly/By phone

5. Modify, cancel put-through orders

Customers are allowed to modify or cancel unexecuted put-through orders. For executed orders, Customers are allowed to modify or cancel unexecuted put-through orders. For executed orders, Customers are only allowed to modify orders under the following conditions:

• With the agreement of the transaction partners;
• Having a reasonable reason for the modification;
• Approved by the HNX.