Vietnam Stock Exchange enhances surveillance for FTSE Russell index restructuring

The Vietnam Stock Exchange (VNX) has issued a new regulation to enhance surveillance of securities trading during FTSE Russell index restructuring periods. This measure specifically applies to stocks listed on the Ho Chi Minh City Stock Exchange (HoSE) during the portfolio adjustment phases of indices managed by FTSE Russell under cooperation agreements with VNX.

The primary objective of this mechanism is to improve the early detection of potential market manipulation or the use of inside information for profit during index rebalancing. The surveillance process will be conducted continuously across three distinct stages:

1. From the trading day immediately preceding the data cutoff date until the day before FTSE Russell announces the new composition. This stage focuses on stocks likely to be added to or removed from the index. 2. From the announcement of the new composition until the trading day before the index takes effect, focusing on the officially identified stocks. 3. A five-day period starting from the date the new index composition officially becomes effective.