Talking to the press recently, Mr. Le Hai Tra, General Director of Ho Chi Minh City Stock Exchange (HoSE), said that the solution to increase the minimum trading lot to 1,000 shares has been referred to international practices and
`Developed markets such as Japan, Taiwan, Singapore… have all gone through this roadmap. According to calculations, increasing lots to 1,000 can reduce the total number of trading orders by 40-50%.
Mr. Le Hai Tra in a recent press response.
In early 2021, the minimum stock lot was raised from 10 to 100 shares.
Explaining the system congestion phenomenon, HoSE representative said that the main reason is due to the sudden increase in HoSE liquidity since the end of 2020. In many trading sessions, the liquidity was nearly 4-5 times the highest level of the past and
`The number of orders entering the floor in many sessions exceeds the number of orders designed for the whole system, causing order congestion. This is a force majeure situation,` Mr. Tra explained.
HoSE’s trading system has a maximum capacity of 900,000 orders per session, operating according to an equal distribution mechanism for securities companies.
Initially, the system divided each company about 3,000 orders equally (all securities companies were divided equally, including companies that had stopped operating).
This allocation is intended to prevent a sudden increase if there is a system error of a securities company.
The solution to completely solving the problem of system congestion is still to replace it.
However, this progress is under favorable conditions.
