Officially launching the individual corporate bond trading system

On July 19, the Hanoi Stock Exchange (HNX) officially announced the launch of the individual corporate bond trading system. HNX expects that more than 1,600 individual corporate bond codes will be put into trading after the system is launched.

According to the trading regulations, individual corporate bond (CBO) trading on the HNX system is carried out through individual CBO trading members (securities companies). The individual CBO trading system only receives trading orders from individual CBO trading members.

The trading mechanism in the secondary private corporate bond market is negotiated trading. With this mechanism, investors must fully understand and confirm information before buying. The payment mechanism is similar to the derivatives market, which is instant payment and end-of-day payment.

Putting the individual corporate bond trading system into operation will contribute to increasing transparency, limiting risks for investors in individual corporate bond transactions, contributing to promoting liquidity for the corporate bond market, and at the same time creating conditions for the individual corporate bond primary market to develop more sustainably.

Finance - Banking - Officially launching the individual corporate bond trading system — The individual corporate bond trading system officially opened on the HNX floor.

Regarding trading hours, HNX organizes individual bond trading from Monday to Friday every week, except holidays. Specific trading hours include 2 sessions: morning session (9:00-11:30), afternoon session (13:00-14:45).

Investors must open a trading account at a trading member to conduct individual corporate bond transactions. Investors who buy bonds are professional securities investors. Accordingly, individual corporate bond trading members are responsible for determining the investor's qualifications, ensuring that investors are the correct trading subjects according to regulations.

Since June 2023, the system has completed testing with its member, Vietnam Securities Depository (VSD).

The test results show that the system has been operating stably, meeting the requirements of members in entering orders and looking up information, meeting the requirements of HNX in managing and operating the system. Transaction data has been transferred completely, accurately and smoothly to VSD for payment. HNX has also completed organizing two training sessions for members, preparing for participation and safe use of the system.

Regulations on individual TPDN agreement transactions

Private bond transactions are normal buying and selling transactions using the negotiated transaction method on the private corporate bond trading system according to the principle that the parties participating in the transaction negotiate and agree on the transaction contents. The negotiated transaction is established when the buyer and seller enter a transaction order into the trading system and the counterparty confirms this transaction order.

The unit of trading volume is 1 bond. The minimum trading volume is 1 bond.

There are two methods of agreement transaction: Electronic agreement and conventional agreement.

For the electronic agreement method, the trading member enters a buy or sell order with a firm commitment into the system or selects appropriate corresponding orders that have been entered into the system to execute the transaction.

With a normal agreement , the buyer and seller agree on the transaction terms in advance and report the results of individual bond transactions to establish the transaction .

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