State Securities Commission proposes a series of solutions to upgrade the market, revealing the operating time of KRX

One thing worth noting is that the KRX operational roadmap has been planned. The KRX system will be operational after members test it, expected to be operational in May or June 2025.

State Securities Commission proposes a series of solutions to upgrade the market, revealing the operating time of KRX

One thing worth noting is that the KRX operational roadmap has been planned. The KRX system will be operational after members test it, expected to be operational in May or June 2025.

According to information from the State Securities Commission (SSC), in recent times, the SSC has proposed amendments and supplements to legal documents, and actively coordinated with relevant ministries and branches to resolutely implement solutions to gradually meet the criteria of market rating organizations towards the goal of upgrading the Vietnamese stock market from frontier to emerging.

The Ministry of Finance and the State Securities Commission have organized many working sessions, exchanges and dialogues with international financial and rating organizations such as the World Bank (WB), MSCI, FTSE Russell, the Association of Global Depository (AGC), and the Asian Securities and Financial Markets Association (ASIFMA); these organizations all highly appreciate Vietnam's reform efforts.

In order to continue to facilitate foreign investors' trading activities in Vietnam towards the goal of upgrading the stock market, the State Securities Commission will continue to implement a number of specific solutions in 2025.

Specifically, according to the provisions of Circular 68, in case a foreign institutional investor does not repurchase shares, the securities company where the investor places the order will disclose information about the unpaid transaction, including information about the authorized representative of the foreign investment organization. FTSE Russell proposed to only disclose information about the organization that does not pay for the transaction, without disclosing information about the organization's representative. The State Securities Commission proposed to amend the information disclosure appendix in Circular 68/2024/TT-BTC in the direction of removing the content of disclosing information about the identity of the authorized representative, expected to be implemented in 2025.  

There are also different ways of handling between securities companies when implementing NPF (Non prefunding) transactions such as: The list of securities that can use NFP services is limited at some securities companies; The determination of the amount of money required when placing a stock purchase order is different between securities companies; There is currently no consensus in the process of handling "fail trade" (error transaction) between securities companies (some companies sell securities, some companies allow investors to buy back); The signing of agreements/contracts with customers between securities companies is different. Regarding this issue, the State Securities Commission has discussed with securities companies and requested that the units unify the handling method, minimizing the differences when implementing the service.

In April 2025, the Stock Exchanges and VSDC will announce the new functions and features of the KRX system before the KRX system is put into operation so that the market has full information about the KRX system.

Currently, VSDC has completed the addition of new functions on the current Electronic Communication Portal system for securities companies and depository banks to use to exchange information serving the securities trading activities of investors opening depository accounts at depository banks. VSDC has conducted testing with market members and will put it into operation in March 2025.  

This March, the State Securities Commission will establish a policy dialogue group to discuss with management agencies the difficulties and obstacles of foreign investors and implement procedures to amend and supplement a number of legal regulations to simplify and shorten the time to open accounts for indirect investment activities of foreign investors.

The State Securities Commission is also researching to deploy an Omnibus trading account (OTA) initially applied to foreign investment funds.  

The total transaction account (OTA) is an account that allows the Fund Management Company to simultaneously buy/sell securities for all funds managed by the Company and does not have to execute separate buy/sell orders on each fund account as is currently the case. The implementation of the total transaction account will help foreign institutional investors and fund management companies simplify the placement of orders for funds and ensure order matching at the same price for each fund managed by the company. It is expected that before August 2025, Circular 120/2020/TT-BTC will be considered to amend and supplement to supplement regulations on the total account of the fund management company and clarify the process of allocating total transaction orders to detail accounting for funds and fund portfolios.

The State Securities Commission said it will continue to implement solutions to move forward in 2026, when the central clearing counterparty mechanism (CCP) will be deployed for the Vietnamese stock market.

Source: https://baodautu.vn/uy-ban-chung-khoan-nha-nuoc-neu-loat-giai-phap-nang-hang-thi-truong-he-lo-thoi-gian-van-hanh-krx-d252096.html