The launch of the new KRX trading system on May 5 represents a significant milestone for Vietnam’s stock market. After over a decade of preparation, this technological advancement is poised to elevate Vietnam’s market status. Nguyen Duy Hung, chairman of Saigon Securities Inc. (SSI), emphasized the transformative potential of this system, foreseeing enhanced liquidity and transparency. The implementation of new derivative products is expected to attract international capital inflows, potentially leading to an upgrade in Vietnam’s market status by global index providers like FTSE Russell and MSCI. The Ho Chi Minh Stock Exchange (HoSE) and securities firms, such as SSI, dedicated substantial efforts during the National Reunification and May Day holiday to ensure a seamless transition to the KRX system. Teams worked tirelessly to align their operations with the system upgrade schedule, temporarily suspending online trading and fund transfer services to facilitate the transition.
KB Securities Vietnam (KBSV) and other securities firms undertook system upgrades in preparation for the KRX trading system’s launch. Viet Dragon Securities (VDSC) announced successful integration with the KRX system ahead of the go-live date, enabling clients to access updated data through their trading platform. The KRX system, a collaborative effort between the HoSE and Korea Exchange (KRX), aims to modernize Vietnam’s stock trading infrastructure. This comprehensive platform is designed to enhance market capabilities by introducing features like same-day trading, short selling, and options contracts. The KRX system is expected to revolutionize trading practices, streamlining processes and facilitating advanced trading strategies for market participants. The HoSE, Hanoi Stock Exchange (HNX), and Vietnam Securities Depository and Clearing Corporation (VSDC) are poised to benefit significantly from the system’s implementation.
The KRX system will introduce several changes to trading regulations in Vietnam, enhancing market efficiency and transparency. Notable changes include the treatment of ATO/ATC orders, modifications to limit orders, and adjustments in foreign investor transactions. The system’s launch coincides with the unveiling of a revamped interface for the HoSE’s official website, aiming to provide investors with timely and accurate market information. The upgraded website will serve as a platform for investor engagement, fostering a closer connection between market participants and regulatory bodies. The KRX trading system’s implementation is a testament to Vietnam’s commitment to advancing its capital market infrastructure and attracting international investments.
The successful integration of the KRX system marks a significant step towards modernizing Vietnam’s stock market and enhancing its competitiveness on the global stage. The system’s introduction of advanced trading features and streamlined processes is poised to attract a broader investor base and stimulate market activity. As Vietnam continues to position itself as an attractive investment destination, the KRX trading system’s launch serves as a testament to the country’s commitment to fostering a robust and efficient capital market ecosystem.
