Regulations in the Performance of Business Mgck

Brokerage must be effective. A stockbroker or salesperson must always determine what securities the public is interested in. To determine which securities customers are interested in, the securities company's salespeople may consider the following conditions: economic conditions, current stock market conditions, and projected growth. economy ...

Determining which types of securities the public is interested in will help securities companies adjust products (such as stocks, bonds, fund certificates...) to best suit the tastes of customers. In the securities company, the MGCK house or the sales staff will directly contact the company's customers to introduce the selected products. When interacting with customers, MGCK can sell those securities or advise customers to buy the best securities. When a broker makes a sale, processing begins. How a transaction goes is very important. If a transaction goes perfectly, it shows the client that the company's brokers care about them, about their account. This will make a good impression on customers, and they will be ready to ask the securities company to make the next deals.

The execution of a securities transaction generally includes the preparations and systems for the entry and transmission of orders between the parties, equilibrium price discovery, order execution, transaction reporting, monitoring and market information. school. These tasks and systems can range from simple paperwork to electronic processing and information systems, depending on market requirements. Transactions between a client and an MGCK are generally done directly between the two parties. In contrast, transactions between two MGCKs are usually carried out through a market mechanism, such as a central exchange where buyers and sellers meet, a traditional over-the-counter market, or a real-time trading system. Automated trading. During the entire transaction process, the department

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Administration is always working. They calculate, book commissions, pay expenses, enter revenue accounts, hire people...

*Trading process of securities brokerage activities of securities companies

The trading process of a common stock operation includes the following steps:

Step 1: Open an account

Step 2: Receive the order

Step 3: Execute the order

Step 4: Confirm for the customer, issue the certificate and enter the customer's tracking book

Step 5: Payment and delivery

(The content of the above steps is described in detail in the appendix.)


*Organizational structure of a securities brokerage company

Regarding the organizational structure of a securities brokerage company, there are

the following boards:

1. Command room

2. Buying and selling department

3. Escrow Department

4. Treasurer Department

5. Securities records management department

6. Cash accounting department

7. Securities income management department

8. New Accounts Department

(Details about the above parts are presented in Appendix 2.)

1.3 Regulations in the performance of MGCK operations

In the transaction process of MGCK activities, both securities companies and customers must comply with the regulations issued in the regulations of the organization.

organization and operation of securities companies or the State's laws on securities. Specifically, it includes the following basic provisions: [15]

1.3.1 Securities company

First, the securities company must correctly execute the customer's orders. Any errors caused by the securities company, leading to the wrong execution of orders causing damage to customers, the securities company and the employees of the securities company must be fully responsible financially and legally. the law.

Secondly, at the request of the customer, monthly and quarterly, the securities company will send a securities report to the customer to compare the amount and securities on the customer's account.

Tuesday. The securities company is responsible for organizing the arrangement, tracking and execution of customer orders in the most effective way. In case the customer's securities are in the name of the securities company, the securities company must organize the monitoring and provide information when requested by the customer, as well as the transfer of dividends to the customer.

Fourthly, the securities company must notify the result of order execution to the customer no later than the working day following the day of transaction execution. If the notice is delayed, the securities company shall be responsible for the customer's late payment and delivery.

Fifth, in MGCK activities, securities companies must ensure professional confidentiality, not disclose transaction types, details related to customers' transactions and deposit accounts, except for the following cases: in case the customer allows or when the SSC requires the presentation of documents and books for inspection.

1.3.2 Customers

15 Decision No. 04/1998/QD-UBCK3 dated October 13, 1998 of the Chairman of the State Securities Commission on promulgating the Regulation on organization and operation of the Securities Company.

Firstly, the customer is responsible for paying or transferring the securities when the securities company fulfills the requirements of the customer.

Second, when the customer wants to modify or cancel the order placed, the customer must notify the securities company for timely adjustment. In case the order has been executed, the modification or waiver will be invalid, the customer is responsible for paying or transferring the executed securities.

Thirdly, when a customer authorizes a securities company or MGCK staff to use his account to buy and sell securities, the customer must make a letter of authorization for that securities company or MGCK person. The order and procedures are in accordance with current laws and must be approved by the securities company or the bank where the customer opens an account.

Fourth, in the case that after the order has been completed, if the customer does not pay the full amount by the time of payment or deliver the missing amount of securities, the securities company still has the right to sue the customer to claim the payment. Ask for payment of commissions and other expenses.

1.3.3 Brokerage fee

Commissions for stockbroking are usually calculated as a percentage of the total number of trades, and as a rule, the larger the trading volume, the lower the commission rate. The minimum and maximum levels of commissions for securities trading activities in Vietnam will be regulated by the State Securities Commission.

Usually, securities companies have their own commission regime and sometimes adjust accordingly. Small companies often have to wait to see big firms like Merrill Lynch (USA), Nomura (Japan) etc. to announce their commission rates before announcing their rates.

2. Stockbroker

2.1 General concept of a stockbroker

A stockbroker is an intermediary who, on behalf of his clients, conducts activities of buying and selling securities at the request of the client and is entitled to commission for the transactions he conducts. The term stockbroker refers to companies

photo: securities broker hsc securities stockbroker, but the term stockbroker here refers to an 1

Photo: securities broker HSC Securities

stockbroker, but the term stockbroker here refers to an individual who practices stockbroking .

It can be said that the business performance of a securities company depends greatly on the professional qualifications as well as the professional skills of the stockbrokers, because they are the ones who find customers for the company and are the direct brought the company huge profits based on the securities brokerage contracts with customers. In the world the top MGCK brokers account for only 20% but they themselves bring 80% of the commission to their MGCK company. Besides, it must be said that the MGCK profession also gives MGCK practitioners a decent remuneration. In a developed stock market like Wall Street, MGCK's income is comparable to some of the highest earners today such as lawyers, doctors... However, in order to become a good MGCK, they must meet the requirements of the profession, sometimes extremely demanding and harsh.

2.2 Basic professional skills of a stockbroker

And how can an MGCK person approach customers and help customers effectively, this requires in MGCK people a series of necessary skills, these skills are inseparable.

separate from each other, but stick together and support each other. The necessary skills in a stockbroker are the following skills: 16

2.2.1 Communication skills

As a stockbroker, communication skills are very important. The performance of this skill depends not only on the words used by the broker, but also on the wording and the ability to convey information. To be able to bring information to customers in the most effective way, a broker must have good communication skills, manifested in the following aspects:

Attitude of interest : The expression of concern for customers is the fact that the broker learns about the needs, capabilities and preferences of the customer. And the broker must always respect the interests of the customer, consider the customer first and always respect them.

Speaking skills: this skill brings a lot of success to the broker, for example in the case of face-to-face or telephone conversations, the broker must be able to convey all the ideas of the broker. through my voice . In fact, up to 93% of the meaning of any communication is conveyed not by words but by tone of voice, by emphasis of words used, by speed of speech.. Therefore, always pay attention and shape the voice to the extent possible, MGCK people will create a good impression on customers over the phone in particular, and through the voice in general. When speaking, the requirement is to speak clearly and succinctly but still fully express the content to be conveyed.

2.2.2 Skills to find customers

An important step in the operation of a stockbroker is finding clients. MGCK people can't just sit and wait for customers

16 Dr. Tran Thi Thai Ha, " Security brokerage profession ", National Political Publishing House, 2001, Tr. 218

come to me but it is necessary to find the customers myself. And finding customers will increase the broker's income as well as maintain a stable growth in the securities trading activities of the securities company.

Here are some of the most popular ways to find customers: 17

First, based on the clues built by the company or the accounts handed over. According to this method, stockbrokers do not seem to be proactive in the process of contacting customers, so their performance is often affected. However, for some seasoned stockbrokers, they can quickly reach these existing customers and they certainly won't miss out on continuing to maintain and improve their services. relationships to bring the highest efficiency for the company's business.

Second, through customer referrals. In order to receive customer referrals, MGCK people themselves must be the ones who have created trust with their own customers. If these people invest effectively and believe in the MGCK house, they will be willing to introduce to the MGCK people their friends who are intending to invest in securities.

Third, do marketing and sales to the wealthy or conduct research and find the ideal customers, potential customers.

Fourth, organize seminars, contact, exchange business knowledge between industries and most importantly, MGCK people must know how to seize these important opportunities to find customers.

Fifth, implement letter-and-call campaigns. In today's developing information technology era, writing an email to introduce and get acquainted is an effective method. This is the most commonly used method of reaching potential customers and remember that you have to know them quite well. Even with the best lists

17 Dr. Tran Thi Thai Ha, " Security brokerage profession ", National Political Publishing House, 2001, Tr. 139

also just expect a response rate of 1% - 2%. When calling to get acquainted, the broker needs to verify if the customer needs a broker? Is this what the broker is looking for? Only then will MGCK people hope to find potential and effective customers for themselves.

2.2.3 Information mining skills

An MGCK's job is to be in constant contact with clients, and to be a successful investment advisor requires an understanding of how clients make decisions and their motivations. What is that? From exploiting information from customers, the broker will determine which type of service is most suitable for customers, and at the same time give effective advice for customers' investment activities. The good performance of this service not only increases the amount of assets under management of the securities company, but also increases the loyalty and creates a good impression of the securities company with the customers.

To perform well in information mining skills, brokers need to master the following issues:

- Understand the financial needs, resources, and risk tolerance levels of the client.

- Understanding how clients think and make investment decisions, as well as the inner feelings that can influence their response to the helping relationship, enable NMG to meet their needs.

- Committed to achieving client's financial goals.

- Find a language for potential customers about buying criteria and building strategies to motivate them.

- Increase the percentage of client's assets for securities investment.

The process of information extraction is carried out from the first contact to the next meeting. Requirement here is a certificate broker

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