The Ho Chi Minh Stock Exchange (HoSE) is exerting every effort to put a trading system developed by the Korea Exchange (KRX) into operation at the end of 2023, said HoSE Acting Chairwoman Nguyen Thi Viet Ha.
Speaking at a meeting at the headquarters of the HoSE on August 22 to discuss the plan to implement the system, Ha said that the rate of testing the KRX system among members is still low, with just 25 out of 76 securities companies completing 100% functional testing.
A similar situation occurred at the Hanoi Stock Exchange (HNX) and the Vietnam Securities Depository and Clearing Corporation (VSDC), raising concerns among testing bodies.
According to her, the Vietnam Stock Exchange (VNX) is working with both the HoSE and the HNX to correct the legality, trying to match the legality with the time of implementing the new system.
As planned, the KRX system will be officially launched in December this year. However, it is expected that new features will not be fully implemented immediately. The system will operate with basic features, and new features will be deployed step by step according to the roadmap.
“The Ministry of Finance (MoF) has been directed to put the KRX system into operation by the end of this year. If market participants and securities companies are not prepared, organisers will have to take action and cannot wait for the securities firms. If the securities companies are not ready, the HoSE as the investor will still continue, and the securities companies will bear the losses,” Ha said.
Earlier this year, MoF Deputy Minister Nguyen Duc Chi said that the HoSE needs to operate the KRX system according to the project’s schedule, ensuring the smooth operation of the market continuously and effectively, while coordinating to implement the restructuring of the market, focusing on stabilising the market and strengthening supervision.
The exchange also needs to ensure a safe and transparent market and actively cooperate with the VNX to complete the regulations and operating procedures, Chi added.
The KRX system is an information technology system for managing and operating transactions on the Vietnamese stock market, signed by the HoSE and the KRX in 2012.
The project aims to upgrade the technology system and infrastructure of the stock exchange in Vietnam.
Due to many reasons, such as the pandemic and the complex nature of the bidding package, the KRX system has not yet run as planned.
The KRX system is expected to bring new products, trading, and payment solutions to the Vietnamese stock market, such as T 0 settlement, short selling, and option contracts. This will create a premise to solve the bottlenecks and move towards upgrading the market from frontier to emerging./.
Source: Vietnam News Agency