Three levels of unusual securities trading monitoring

In the information sent to the press on April 29, the Ministry of Finance assessed that recently, Vietnam stock market be affected by negative developments at home and abroad such as the increase in interest rates in the US, the trade war between countries, the geopolitical situation, the high oil price, the volatility in the financial market main – international currency.

Besides the positive side of the stock market, on the basis of supervision, the State Securities Commission found that there were listed and registered stocks with strong fluctuations in trading volume and price. There are some unusual fluctuations. As noted, a number of newspapers, magazines, and websites have also reported on the price increase of some stocks on the market.

According to the Ministry of Finance, legal regulations on the supervision of irregular transactions and handling of manipulative transactions have been fully promulgated. The supervision work on the stock market was previously divided into 2 levels, in which the Stock Exchange is the line 1 supervisor, responsible for monitoring signs of abnormal transactions, reporting to the SSC, and the SSC is the 2nd line supervisor.

From the Securities Law 2019, the supervision of transactions on the stock market has been upgraded to 3-level supervision, thereby adding a supervisory line of a securities company in addition to the supervision of the Stock Exchange and the State Securities Commission.

Over the past time, under the direction of the Ministry of Finance, the State Securities Commission has carried out supervision, inspection and handling of cases of stock market manipulation.

Typically, the State Securities Commission has recommended and warned investors when participating in securities groups, is continuing to strengthen supervision and information processing in cyberspace, and coordinates with relevant authorities in the field of securities. detect and strictly handle individuals and organizations that violate the provisions of the Law on Securities (case Dang Nhu Quynh Posting false information on personal Facebook page negatively affects the stock market, April 2022).

Strengthen supervision and strictly handle organizations and individuals that violate regulations on transactions and information disclosure, especially transaction and information disclosure activities of major shareholders and founding shareholders. , business leadership (case Trinh Van Quyet was prosecuted for the act of “Manipulating the stock market”, “Concealing information in securities activities”, March 2022).

Strengthening control over activities of securities companies, especially lending activities using financial leverage; strictly handle securities companies involved in stock market manipulation (the case of “stock market manipulation” occurred at Tri Viet Securities Joint Stock Company, Louis Holdings Joint Stock Company, April 2022).

As for the problem The press reflected on the phenomenon of securities companies ( Securities companies) managing accounts, consulting and investing comfortably in securities, “while kicking and blowing the whistle”According to international practice, securities companies are allowed to conduct securities trading, securities underwriting, securities brokerage and securities investment consulting.

Clause 1, Article 72 of the Law on Securities stipulates that a securities company is licensed to conduct one, several or all securities business operations, including: securities brokerage, securities proprietary trading, securities underwriting and advisory services. stock investment advice.

Regarding the prevention of conflicts of interest, the operation process, the securities company licensed to conduct proprietary trading, customer account management and securities investment consulting may have a conflict of interest between the securities company and the customer. Therefore, in order to prevent, the Law on Securities (Article 89) and guiding documents (Circular No. 121/2020/TT-BTC of the Minister of Finance regulating securities company activities) have regulated to limit the conflicts of interest between customers and securities companies (Articles 4, 13, 22). Accordingly, the securities company is obliged to prioritize the interests and protect the assets of customers.

Regarding supervisory management, the State Securities Commission conducts regular and continuous supervision through reports or on-site inspection of the activities of securities companies to ensure that securities companies operate in compliance with the law.

Luong Bang

Why are securities violations increasing?Greater market size and openness, coupled with tighter regulations, have given rise to more complex issues, and more sophisticated securities violations.