HoSE increases minimum round lot from 10 to 100 shares

SGGP
The Ho Chi Minh City Stock Exchange (HoSE) has just released an announcement on the adjustment of the trading unit of a round lot as of January 4.
Accordingly, the trading unit of a round lot applied on the HoSE is 100 shares, closed-end fund certificates, exchange-traded fund certificates, and covered warrants. Each round lot order must not exceed the maximum of 500,000 shares, closed-end fund certificates, exchange-traded fund certificates, and covered warrants. This regulation becomes effective from January 4, 2021.

In recent trading sessions, the stock trading system on the HoSE continuously faced network congestion when market liquidity surged to above VND13 trillion. Many experts said that increasing the trading unit of a round lot from 10 to 100 would ease network congestion. However, according to the Vietnam Association of Financial Investors, this regulation would make it difficult for small investors to approach stocks with high prices.

By Minh Duy – Translated by Bao Nghi

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