HoSE releases information on proprietary trading

The Ho Chi Minh City Stock Exchange (HoSE) started releasing information on proprietary trading on May 17, with the Hanoi Stock Exchange (HNX) to follow before May 23.

Investor at a securities company in Hanoi. Photo: The Hanoi Times

Acting Chairwoman of HoSE Nguyen Thi Viet Ha told local media, noting the stock exchange would provide information on transaction activities for each ticker.

Meanwhile, the HNX’s representative said the disclosure of information on proprietary trading would start before May 23 as instructed by the State Securities Commission of Vietnam (SSC), due to the time required for technical preparation.

In March, the HoSE announced it would stop providing information on proprietary trading of securities companies from March 1, seen as one of the first signs of the investment trend in the stock market.

Proprietary trading occurs when a security company trades stocks, bonds, and their derivatives with the firm’s own money. A net sell or net buy as a result of this process would normally catch the attention of investors, as they reflect the expectation for the market in the short term and eventually impact the supply-demand balance.

Such information, provided by stock exchanges, would not be disclosed to investors but sold in separate service packages for information service providers.

Vn-Index closed yesterday's session with an increase of 56 points or 4.81% against the reference point, the highest since April 2020, to 1,228.37.

Market liquidity, however, was estimated at VND14.3 trillion (US$618.1 million), down VND300 billion from the previous session, the lowest of the past four sessions.

The capital was concentrated on stocks of firms in banking finance, real estate, industry, and construction materials.