The volume of each order entered into the market from 4/1/2021 must be a multiple of 100, instead of 10 as currently.
On the evening of December 30, the Ho Chi Minh City Stock Exchange (HoSE) announced that all member securities companies are ready to adjust their parity-lot trading units from 10 to 100 stocks, including stocks, closed fund certificates, ETF certificates and warrants.
HoSE decided to do this from the first trading session of 2021 after being approved by the State Securities Commission.
This change applies two weeks earlier than planned and is expected to reduce the system load, limit transaction congestion when the market liquidity is approximately 14,000 billion dong as in recent sessions.
Share with VnExpress This morning, Mr. Nguyen Thanh Tung – Deputy General Director of Yuanta Securities Vietnam (YSVN) said that this transformation “is very small”. The trial process with HoSE went smoothly and the company just waits for the official information to communicate with the customer.
“Our system processes over 100,000 orders per session, of which orders under 100 shares account for about 2%, so when officially deployed, the level of offloading is corresponding,” Tung said.
One day earlier, VNDirect Securities Company reminded customers of the expected time to increase trading lots to proactively handle. Explaining this, Mr. Nguyen The Hieu – Director of Securities Services said that because the number of new accounts opened here from the beginning of the year to mid-December was more than 100,000, accounting for 30% of the whole market, so the impact of the change. This will be larger than the other companies.
Mr. Hieu assessed that it is appropriate to increase Lot 10 to 100 stocks, because the trading size of the market has increased sharply and is forecasted to continue to increase following the recovery of the economy. “This policy can help the HoSE system reduce the number of orders by 20%,” he said.
The leader of a fund management company said that the previous market had traded 100 even lots, but then the management agency divided it down to 10 to absorb liquidity. As the game gets bigger, back lifting is needed to reduce the pressure load on the system. Many stock markets in the region also apply 100 even-lot trading units such as SET (Thailand), BM (Malaysia), SGX (Singapore), SSE (Shanghai) …
He said that this is not a move that shows that the market regulator intends to block small investors. In the immediate future, investors holding odd lots can trade with securities companies, but the new system will soon have their own trading boards.
“The new policy does not have much impact on the market trend, because most of the stock prices are below VND 100,000, so it is not difficult for investors to approach,” he said.
Sharing the same point of view, Mr. Tung said that VN-Index will not be under the pressure of increasing lots. The index in short-term is still gaining momentum, but when it approaches 1,103 points, correcting pressure might be more.
YSVN leaders also expect that investor sentiment will not be disturbed because of change. Individuals with little capital or new entry in the market will have difficulty initially due to the habit of dripping disbursement, but can then change their investment appetite when switching from large to medium-cap stocks.