Vietnam's new stock trading system scheduled for May 5

THE HANOI TIMES — Vietnam’s new stock trading system is set to go live on May 5 following a trial phase with brokerage firms, the Ho Chi Minh City Stock Exchange (HoSE) announced.

The move is considered a crucial step toward Vietnam's upgrade to secondary emerging market status in September.

The system, developed by the Korea Exchange (KRX), introduces new features designed to attract more investors and boost market liquidity. Analysts, brokerages, and investment funds believe it could help Vietnam's stock market meet the criteria for an upgrade.

HoSE outlined key changes under the new system, the most significant of which is the adjustment of ATO and ATC orders during periodic matching sessions. Under the updated system, these orders will no longer have execution priority over previously entered limit orders (LOs). In addition, ATO and ATC orders will be displayed at a specific price level, similar to limit orders, rather than appearing with "ATO" and "ATC" price markers.

Other changes include modifications to order amendments and cancellations, block trades, odd-lot trades, and top-three bid/ask display during periodic matching sessions.

Originally slated for completion in 2021, the system has faced several delays. Last year, news of test runs and operational schedules drove gains in brokerage stocks and lifted the broader market index.

In a recent report, VNDirect Securities expressed optimism that the system would be in place in the second quarter. If Vietnam also meets FTSE Russell's remaining requirements on pre-funding and failed trade costs, the market could receive a positive reassessment in March and possibly be upgraded to secondary emerging market status in September.