VI Investing in stocks today is also one of the types of investment popular with people. However, a number of issues related to this type of investment, although not too unfamiliar, still raise a lot of questions. Through today’s article, let’s help Pham Consult answer some more questions in this field.
What is continuous order matching?
Pursuant to Clause 6, Article 2 of Circular 120/2020/TT-BTC:
Continuous order matching is a trading method performed on the stock trading system on the basis of matching stock buy and sell orders as soon as the order is entered into the stock trading system.
In addition, the centralized order matching method is a transaction method carried out on the stock exchange system on the basis of matching buy and sell orders of securities.
Centralized order matching methods include periodic order matching and continuous order matching.
Periodic order matching is a trading method performed on the stock exchange system on the basis of matching buy and sell orders of securities at a specified time.
According to what principles does the stock exchange organize stock trading using the continuous order matching method?
Pursuant to Article 3 of Circular 120/2020/TT-BTC regulations on securities trading organization as follows:
Organize stock transactions
1. The Stock Exchange organizes securities trading using the centralized order matching method and the negotiated trading method according to the following principles:
a) The centralized order matching method on the securities trading system must ensure the principle of price and time priority;
b) The put-through trading method on the stock trading system is implemented according to the principle that the parties participating in the transaction reach their own agreement and agree on the transaction contents.
2. Securities specified in Clause 1, Article 1 of this Circular are traded on the securities trading system, excluding cases of ownership transfer outside the securities trading system in accordance with the law on registration, depository, clearing and settlement of securities transactions. The stock exchange is allowed to organize mandatory buy-in trading sessions through the stock trading system.
3. Vietnam Stock Exchange promulgates securities trading regulations including the following basic contents: trading methods; transaction time; how to determine reference price; stock price fluctuation amplitude; market circuit breaker mechanism (if any); types of trading orders; modifying orders and canceling trading orders; the establishment of transactions and the removal of securities transactions; temporary suspension of trading, partial or complete suspension of trading of a stock code; the publication of information on transaction results and other related content.
Thus, the Stock Exchange organizes stock trading by continuous order matching method on the stock trading system to ensure the principle of price and time priority.
In particular, according to the provisions of Clause 26, Article 4 of the Securities Law 2019:
The securities trading system includes a trading system for listed securities and a trading system for unlisted securities, operated by the Vietnam Stock Exchange and its subsidiaries (Vietnam Stock Exchange). hereinafter referred to as Vietnam Stock Exchange and its subsidiaries) organization and operation.
Which agency is responsible for directing the State Securities Commission to implement strategies, plans, schemes and policies for stock market development?
Pursuant to Article 8 of the Securities Law 2019, regulations on state management of securities and securities market are as follows:
State management of securities and stock market
1. The Government unifies state management of securities and the stock market.
2. The Ministry of Finance is responsible before the Government for implementing state management of securities and the securities market and has the following tasks and powers:
a) Submit to the Government and Prime Minister for promulgation of strategies, plans, schemes and policies for stock market development;
b) Submit to competent authorities for promulgation or promulgate according to authority legal documents on securities and securities market;
c) Direct the State Securities Commission to implement strategies, plans, projects, and policies to develop the stock market and legal documents on securities and the stock market.
3. Ministries and ministerial-level agencies, within the scope of their duties and powers, are responsible for coordinating with the Ministry of Finance to carry out state management of securities and the securities market.
4. People’s Committees at all levels, within the scope of their duties and powers, are responsible for implementing state management of securities and the local securities market.
Thus, the Ministry of Finance is the agency responsible for directing the State Securities Commission to implement strategies, plans, schemes, and policies to develop the stock market and legal documents on securities. and stock market.
Through the above article, Pham Consult has helped you learn about a new issue. Hope the above information will be helpful to you.
Through the above article, Pham Consult has helped you learn about a new issue. Hope the above information will be helpful to you.
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