HoSE to launch KRX-developed transaction system in early May

The Ho Chi Minh City Stock Exchange (HoSE) has announced the plan to officially launch the new trading system developed by the Korea Exchange (KRX), South Korea’s bourse operator, on May 2.

An investor at a securities company in Hanoi. Photo: Viet Dung/The Hanoi Times

The HoSE had earlier issued an urgent notice to brokerage firms regarding the planned transition to the new trading system (KRX) in preparation for its official deployment.

Specifically, on April 24 and 25, brokerage firms will conduct connectivity checks with HoSE. Then, on the following day [April 26], end-of-day data will be migrated to the exchange's new trading system.

Brokerage firms are required to take the initiative to prepare data for the cutover test.

From April 27-29, HoSE will be carrying out the trading system migration. Brokerage firms are urged to plan and execute preparatory tasks to synchronize the roll-out.

Brokerage firms will carry out the cutover test by 30 April. Trading on the HoSE system will commence on May 2, with transaction data available from April 26.

"The brokerage firms should test trading seamlessly on their systems with the exchange's new system as on a normal trading day," HoSE noted, stressing the importance of absolutely avoiding the use of automated order entry software and testing unrealistic scenarios.

HoSE also noted that by the end of April 30, based on the cutover test results, the exchange will announce the official roll-out of the new trading system.

"In the event of an unofficial rollout, brokerage firms should prepare their systems to continue trading on the current trading system," emphasized HoSE.

Earlier, on April 19, the Hanoi Stock Exchange (HNX) announced preparations for infrastructure and resources for the KRX system to "go live."

Specifically, HNX management tasked the IT department with conducting a thorough review of the technology environment, technical infrastructure, servers, workstations, and software with contractors and investors.

Thus, after 12 years since the inception of the KRX project, the stock market has received clearer information on the roadmap for the official operation of KRX.

According to experts, the operation of KRX is crucial for the market in the coming time. The introduction of KRX into Vietnam will provide a foundation and platform for new product development and upgrade requirements.

The KRX system introduces a range of novel features, notably catering to individual investors with a dedicated platform and enabling day trading (T+0). The technology system project, initiated between HoSE and KRX in 2012, involves the design, supply, installation, and transfer of the information technology system and is valued at VND600 billion (US$24.3 million). Originally slated for completion in 2021, the transition has been delayed. The latest plan was for the new information technology system to be operational by the end of 2023, but the timeline has been extended.

In its early-year issuance report, KB Securities Vietnam (KBSV) projected that the new system would boost the average daily trading value of the VN-Index by 30-70% compared to the recent 5-year average liquidity. KBSV anticipates that the operational launch of KRX will fulfill the remaining conditions for the market's upgrade as per FTSE Russell's ranking.