HoSE tests new technology system KRX

HoSE will test run the new KRX information technology system from March 4 after delaying the official operation since the end of last year.

In a recent document sent to securities companies, the Ho Chi Minh City Stock Exchange (HoSE) said that from March 4 to March 8, it will implement the conversion to the new information technology system KRX. The Department requested securities companies to prepare their systems for the conversion according to the schedule, conduct system checks and cutover tests (testing the conversion) on March 7.

During the period of March 11-15, securities companies will test the entry of trading orders, ensuring operations as a normal trading day. HoSE noted that the first day on the system is March 4 and the data for the first trading day is the data at the end of March 1.

Investors monitor the market at the headquarters of a securities company in District 1, Ho Chi Minh City. Photo: Quynh Tran — Investors monitor the market at the headquarters of a securities company in District 1, Ho Chi Minh City. Photo: *Quynh Tran*

KRX is an information technology system designed by the Korea Stock Exchange (KRX). This system provides many new utilities, most notably supporting investors to trade odd lots on a separate board and buy and sell stocks within the day (T+0). The package for designing, supplying, installing and transferring the information technology system was signed by HoSE with KRX in 2012, worth 600 billion VND.

Initially, HoSE planned to complete the project in 2021 but then repeatedly missed the deadline. The latest time, the new IT system was scheduled to officially operate at the end of 2023, but the schedule was still postponed.

The KRX system is highly appreciated by many investors, securities companies and analysts, and is expected to become a new "east wind" for the market in the long term. Recently, information about testing and promises of operation have become a major driving force to push stock prices in the securities industry and the general index up significantly.

In its report released at the beginning of the year, KB Securities Vietnam (KBSV) estimated that the new system would help the average trading value of VN-Index per session increase by 30-70% compared to the average liquidity of the past 5 years. This unit stated that the operation of KRX would meet the missing conditions to upgrade the market according to FTSE Russell's ranking.

During the gong-beating ceremony at HoSE, Ms. Nguyen Thi Chan Phuong - Chairwoman of the State Securities Commission - said that the official operating timeline of KRX does not only depend on the management agency or HoSE investor, but also requires the cooperation of market members, especially securities companies.

"With the direction of the Ministry of Finance and the coordination of the State Securities Commission, the new information technology system will soon come into operation," said Ms. Phuong.

Ms. Nguyen Thi Viet Ha - Acting Chairwoman of HoSE said that the final user testing phase with KRX has been completed. The exchange will try to deploy the system this year.

Siddhartha

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