Countdown to the H-Hour
The HCM City Securities Trading
Center is all ready for its opening
day on July 20, marking the
official operation of the first stock
exchange in Vietnam.According
to Mr. Vu Bang, director of the
HCM City Securities Trading
Center, final preparations for the
opening at 2 p.m. July 20 have
been completed."
According to Mr. Vu Bang, director of the HCM City Securities Trading
Center, final preparations for the opening at 2 p.m. July 20 have been
completed. "The center's transaction system is only suitable for the
beginning of the stock market, but it can provide mock operations and
build confidence for gradual expansion and participation of traders and
investors," Bang said.
Three major preparations for the center have completed. The facilities for
building B where the trading floor is set up have been built. The trading
system is ready with the erection of the transaction, clearing and custody
networks and the electronic information board. The computer network has
also been installed and connected with the networks of securities trading
companies. Bang stressed that the completion of the public information
system is the most important as it can provide information instantly to the
public and securities companies networked with the trading floor.
The trading floor is a hall with an area of 200 square meters located in
building B. Nine transaction desks are set up on the floor, each has two
computers. At present, six desks are occupied by representatives of six
securities companies and the center expects three more to fill the
remainder. Securities companies do not have to pay fees for seat
reservation at the floor. According to stock officials at the center, a seat at
foreign stock trading floors is sold at hundreds of thousands of U.S.
dollars, and late comers must buy back seats through auction where the
price may amount to millions of U.S. dollars. They explain that the center
offers free reservation because the trading floor at present is only a
preliminary floor. In the future when repair of building A is completed, it will
be moved there to become the official trading floor and by that time
securities companies must pay reservation fees. The preliminary trading
floor is expected to operate between 18 and 24 months.
A securities company can post three representatives at the trading floor,
including two principal dealers and one assistant. The assistant helps the
principal dealers receive orders from their company, enter them into the
computer in order and transmit dealing results to the company when the
trading session closes. The three representatives have a very important
role as the speed and accuracy of their operations have a decisive effect
on investors' buy or sell orders. Suppose they receive the buy/sell order
from a customer at 8:15 a.m. If they enter the order immediately and
accurately, when orders are first matched at 9:00 a.m., their order will be
given priority over orders from other companies entered at 8:30 a.m.
although all have the same price and trading volume. If they are slow or
inaccurate in operations and enter the order at 8:45 a.m., orders entered
earlier by other companies will be given priority; and as a result, their
customer will lose.
At the mock trading session held early this month, the operations of
representatives of securities companies were 30 minutes later than
expected. The lateness was later corrected.
The main frame is placed at the upper right corner of the trading floor and
connected with the computers on the floor. A large-screen television is put
at the upper left corner and the electronic board (14 m long x 2 m high) is
fixed on the left wall.
Compared with stock exchanges in other countries, the stock trading floor
of the HCM City Securities Trading Center is smaller and has no place,
often a corridor, for the public. The area for media representatives is not
yet decided. For the time being, five newspapers-The Saigon Times
Daily, Sai Gon Giai phong (Saigon Liberation), Tuoi tre (Youth), Thoi bao
Kinh te Vietnam (Vietnam Economic Times) and Vietnam News-are
expected to publish information on trading sessions on Monday,
Wednesday and Friday.
By Thanh Nam - The Saigon Times Weekly - July 22, 2000.
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