Inauguration of NEW GOVERNMENT BOND TRADING SYSTEM at Hanoi Stock Exchange
On 24/9/2009, Hanoi Stock Exchange is launching the Government bond trading system (Electronic Bond trading system – EBT) with characteristics addressing some drawbacks of current system.
The trading method applied is negotiation (electronic and conventional) which is suitable for transactions with big value but low frequency. Commodities traded on the system include Government bonds, municipal bonds and Government-guaranteed bonds.
The new system provides basic information on the bonds, issuers, members, schedule for coupon payment, ex-right date and bond price calculation. Besides, EBT suports both outright trades and repos trades. Securities companies as regular members and commercial banks as non-regular members are entitled to trade directly via this system. The information system is built so that data is safely kept at DataBond and provided to subcribers via InfoBond and WebBond.
EBT is launched with more than listed 500 bond codes valued at over VND166 billion traded via modern remote trading technology, and nearly 30 members, including large-cap commercial banks. With this scale, we hope that the Government bond market will operate smoothly and efficiently with transparency, professionalism and high liquidity.
Following is some information on the Government bond trading system:
Trading mode on EBT
GB trading on EBT is performed through negotiation including electronic negotiation and conventional negotiation.
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Electronic negotiation
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Conventional negotiation
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Range
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For all trading instruments
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Trading mode
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Competitive
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OTC
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Trading place
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HNX
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HNX and members’
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Settlement method
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T+1
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T+1
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Trading time
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From 8.30 am to 11am on working days (Monday to Friday)
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Trading unit
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1 bond
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Minimum trading volume
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Outright: 100 bonds
Repos: 1,000 bonds
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Outright: 10,000 bonds
Repos: 1,000 bonds
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Trading principles
• GB trading on HNX is implemented according to member mechanism. Only HNX members are allowed to trade directly on EBT; individuals, non member institutions will trade through a HNX member which provides GB brokerage services.
• Transactions of member’s customers are carried out prior to transactions of the member at the best price in the market at the trading time.
Trading tools on EBT
Outright trading:
• Bond type: all Government bond
• Quoted price: Clean price
• Settlement method: DVD multi-lateral settlement
Repos trading:
• Repos trading is regulated by HNX regulation and be in line with international standard repos contract (GRMA)
• Bond type: Government bonds and equivalents
• Repos term: <= 2 days and <= 180 days
• Risk premium: By negotiation
• Ownership to the traded bond: Ownership transferred
• Right to enjoy coupon: Bond transferor in the first trading
For more information, visit Website: www.hnx.vn; www.bond.hnx.vn;