HoSE stops providing information on proprietary trading from early March

The Ho Chi Minh City Stock Exchange (HoSE) is scheduled to stop disclosing information on proprietary trading of securities companies from March 1, one of the first signs of the investment trend in the stock market.

Investors at a securities company in Hanoi. Photo: The Hanoi Times

Proprietary trading occurs when a security company trades stocks, bonds, their derivatives with the firm’s own money. A net-sell or net-buy as a result of this process would normally catch the attention of investors, as they reflect the expectation for the market in the short-term and eventually impact the supply-demand balance.

Under the new change, such information, provided by stock exchanges, would not be disclosed to investors but sold in separate service packages for information service providers.

Investors would then have to access this information via purchasing accounts from those providers.

However, FiinGroup, one of the leading service providers of financial data, said it would stop updating information on proprietary trading from securities companies since March 1, citing “objective reasons from stock exchanges”.

Data from proprietary trading would then later be incorporated into transaction data from domestic organizations.

A representative from HoSE said the new change would not impact the information disclosure, as it is currently being provided for certain customers.

“The move is part of the process for developing new products,” he said.

For the past two years, proprietary trading is a core business activity and contributed to a surge in profits of securities companies.