REGULATION FOR COVERED WARRANT (CW) TRADINGS  ON THE HO CHI MINH CITY STOCK EXCHANGE (HOSE)

From Monday to Friday weekly, except holidays as stipulated by Labor Law

1. Trading time

9:00 – 9:15 The periodic order matching to determine the opening price. Kinds of orders are used: ATO, LO.
9:15 – 11:30 Morning session- continuous order matching I. Kinds of orders are used: LO, MP.
9:00 – 11:30 Put Through Order
11:30 – 13:00 Break time
13:00 – 14:30 Afternoon session - continuous order matching II. Kinds of orders are used: LO, MP.
14:30 – 14:45 Periodic order matching to determine the closing price. Kinds of orders are used: ATC, LO.
13:00 – 15:00 Put Through Order
15:00 Closing market

2. Trading unit

Applied to order matching transaction: 1 trading unit = 100 CW

  • Round lot trading: Multiple of 100, From 100 to 500,000 stocks, do not exceed a maximum volume of 500,000 CW
  • Odd lot Trading: From 1-99 CW

Applied to Put through order:

  • Large lot trading: Mass of large lot trading ≥ 20,000 CW
  • Odd lot trading: From 1 to 99 CW

3. Tick size: Apply a tick size of 10 Dong to all prices

4. How to determine ceiling, floor price

- The ceiling/floor price on the first trading day and the normal trading day of call warrant based on the underlying securities are stocks determined as follows:

  • Ceiling price = Reference price of CW + (Underlying stock's ceiling price – Underlying stock’s reference price) x 1/Conversion ratio
  • Floor price = Reference price of CW – (Underlying stock's reference price – Underlying stock’s Floor price) x 1/Conversion ratio.

- Rounding principle: Round down to ceiling price, round up to floor price in tick size.

- In case the floor price of the warrant is less than or equal to zero (0), the floor price will be the smallest tick size equal to 10 dong.

5. How to determine the reference price

- The reference price for the CW being traded is the closing price of the last trading day.

- The reference price for the first trading day of the call warrant based on the underlying stock is determined as follows:

Reference price of call warrant = Issuing price of  CW x (Reference price of the underlying stock on the CW's first trading day / Reference price of the underlying stock at the CW issuance date) x (Conversion rate at the date of the CW issue announcement / Conversion rate at the first trading day).

6. CW payment price

- The payment price will be determined and announced by the Stock Exchange.

- CW payment price when exercising rights is the average closing price of the underlying securities within five (05) trading days which are previous the expiration day, excluding the expiration date.

7.  Payment for exercise of CW

- CW will be listed on Ho Chi Minh Stock Exchange after isuance and customers can buy/sell them like normal Stock or hold them until they expire. Clearing and settlement time after 11:30 am date T+2

- Notice of CW exercise

  • The last registration date to exercise CW is the second working day after the last trading day at the Stock Exchange. In case of exercising CW due to expiration, the last registration date is the CW expiration date
  • In case of exercising warrants due to expiration, the payment to CW holders is only applicable in case CW in the money.
  • The date of payment for exercise of warrants is the fifth working day from the date of last registration date.