Research on intraday stock trading mechanism

Nghiên cứu cơ chế giao dịch chứng khoán trong ngày

The Ministry of Finance has just issued a Plan to implement the Prime Minister's Decision on approving the Project to Upgrade the Vietnamese Stock Market, with the goal of bringing the domestic stock market to meet "emerging market" standards according to international rating organizations in the near future.

According to the plan, the Ministry of Finance assigned 6 key short-term tasks to units in the securities industry, the completion time is mainly in the period 2025 - 2027 and will continue to be adjusted and supplemented in the following period.

1. First of all, the State Securities Commission (SSC) is assigned to handle the problem of requesting advance payment for securities purchase, thereby removing transaction barriers when the Central Clearing Counterparty (CCP) mechanism has not been implemented in the underlying market.

2. Along with that, the State Securities Commission will research and recommend more transparent solutions regarding foreign ownership ratios, ensuring that foreign investors have equal access to information.

3. Vietnam Securities Depository and Clearing Corporation (VSDC) is required to upgrade the data connection system between custodian banks and securities companies, perfect the STP - Straight Through Processing model, to better serve investors' trading activities.

4. Vietnam Stock Exchange (VNX), Price Management Department and State Securities Commission coordinate to deploy the total trading account (OTA) mechanism, helping investors trade more flexibly.

5. At the same time, VNX will enhance the capacity of the transaction and payment system, ensuring stable operation when transaction volume continues to increase.

6. In addition, the State Securities Commission is assigned to improve the capacity to monitor and manage the stock market, upgrade the information technology system to serve management and supervision, and promote coordination between the Ministry of Finance, the State Bank and the Ministry of Public Security to ensure safety and transparency for the market.

In particular, short selling, or borrowing stocks to sell at a high price, may be allowed on the underlying stock market as early as 2026. This content is stated in the plan to implement the project to upgrade the stock market of the Ministry of Finance. Accordingly, the State Securities Commission (SSC) is assigned to coordinate with the Vietnam Securities Depository (VSD) and the exchanges to study the permission to borrow, lend securities, and control short selling through the pending and same-day trading mechanism (T0). The Ministry of Finance requires specific regulations and roadmaps, with completion time in 2026-2028.

Short selling is the act of selling stocks that the seller does not own at the time of the transaction. When short selling, the investor borrows securities from a brokerage account and sells them in anticipation of a price drop, then buys them back at a lower price in the future to make a profit. This can be understood as short selling stocks as a form of borrowing stocks to sell at a high price, then buying them back at a lower price to make a profit.

Source: https://vtv.vn/nghien-cuu-co-che-giao-dich-chung-khoan-trong-ngay-100251112102514103.htm