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The operation of a privately-placed bond trading system will improve transparency, and limit risks for investors. Photo: Internet

The system runs stably through 2 tests

The Ministry of Finance has assigned HNX to develop the privately-placed bond trading system to meet the requirements of Decree 65/2022/ND-CP amending and supplementing a number of articles of the Decree 153/2020/ND-CP stipulating the offering and trading of privately-placed bonds in the domestic market and the offering of corporate bonds to the international market.

According to HNX, following the goals of developing and running a safe and effective privately-placed bond trading system, meeting the actual requirements of the market, HNX has coordinated with related units to build the system in a timely fashion. HNX has also cooperated with contractors and the units to develop system functions with two phases in line with reality and test the system with many stages, ensuring the accurate and smooth operation of the system.

HNX has completed the construction of the first phase of the system. From June the system has completed testing with its member, the Vietnam Securities Depository (VSD), and satisfied all technical conditions for official operation. The system allows trading members to connect and send orders to HNX's trading system. The system supports two types of orders including electronic agreements and written agreements (transaction reports).

For electronic orders, members can send offers to certain members or to all members of the market and only members who receive the offers can confirm the orders. The system allows information exchange of transactions and depositories with VSD's system. The payment of privately-placed bonds is made under the instant payment method for each transaction, similar to the payment method applied in the derivatives market, or the order will be paid at the end of the trading day under the investor's choice. The system allows one to look up information about the order book, bonds, and transaction statistics.

In addition, HNX has organized tests to ensure the accurate operation of the system. The test results with members through two phases show that the system has operated stably, meeting the member's requirements in order entry and information retrieval, meeting the requirements of HNX in the management and operation of the system, and ensuring the full and accurate transferring of transaction data to VSD for payment. HNX has also completed the development of documents and records and organized two training sessions to issue certificates for system users.

Increase transparency and limit risks for investors

According to HNX, in the past, the transaction of privately-placed bonds was implemented at depository institutions. The transaction form was mainly the transfer between investors and the transfer between investors and depository institutions. Decree No. 65/2022/ND-CP is the legal basis for including the transaction of privately-placed bonds into centralized management. Accordingly, Clause 3, Article 3 of Decree 65/2022/ND-CP stipulates that all privately-placed bonds must be put into centralized trading on the privately-placed bond trading system at the Stock Exchange. The operation of the system will increase transparency, limit risks for investors in transactions, promote liquidity in the bond market, and create favorable conditions for the stable development of the primary market of privately-placed bonds.

HNX said that from 2019 the Ministry of Finance has assigned HNX to build a privately-placed bond website and receive information on the bond issuers and publish information on this website under provisions of Decree 163/2018/ND-CP.

Currently, the website (https://cbonds.hnx.vn/) is upgraded by the Hanoi Stock Exchange not only to update information on issuance activities but also to announce on transaction of privately-placed bonds in line with provisions of Decree No. 65/2022/ND-CP and Circular No. 30/2023/TT-BTC.

After the system officially runs, a database of privately-placed bond transactions is formed. The regulatory agencies will have full information and a comprehensive view of the bond from issuance in the primary market to trading in the secondary market.

In addition, the website continues to serve the information needs of investors, helping investors to access information and have more channels to refer to the price of the bond, contributing to protecting the benefits for investors.

According to the assessment, when the system puts into operation, it will make a transparent market and serve well the operation of transactions in a professional manner under the management and supervision of the authorities to create a safe and effective trading market for investors and promote the unified development of the corporate bond market.