KRX securities system operating from May 5

This afternoon, April 24, Ho Chi Minh City Stock Exchange (HOSE) announced that it will officially put the KRX system into operation from May 5.

HOSE recommends that market members focus on allocating sufficient resources to operate the KRX system as planned; strengthen supervision, dissemination, and propaganda to investors about the system's new features, ensuring a safe, continuous, and stable trading market.

KRX system officially put into operation from May 5

PHOTO: DAO NGOC THACH

The transition from the current system to the KRX system is expected to have certain changes that investors should be aware of.

Specifically, when applying the KRX system, ATO/ATC orders will not be prioritized over previously entered limit orders when matching orders (currently, ATO/ATC orders will be prioritized over limit orders).

ATO/ATC orders will be displayed at a specified price like limit orders (currently ATO/ATC orders are displayed at prices marked "ATO" "ATC").

Regarding the correction or cancellation of matching orders, when applying the new information technology system, investors are allowed to correct the price or volume of unexecuted limit orders (LO orders) or the remaining part of unexecuted orders during the continuous order matching period according to the principle: orders to correct volume reduction will not change the order's priority; orders to correct volume increase or price will change the order's priority.

When applying the KRX system, investors are not allowed to correct or cancel the agreed transactions that have been executed on the trading system (currently, it is allowed to correct the wrongly entered agreed transactions during trading hours by canceling the wrong agreed transaction and entering the correct agreed transaction).

Odd lot transactions will be conducted by periodic order matching, continuous order matching and negotiated transaction methods (currently odd lot transactions are conducted by continuous order matching and negotiated transaction methods).

Securities subject to restricted trading will be traded all day and apply the periodic order matching trading method, including: periodic order matching session to determine the opening price, then periodic order matching sessions each lasting 15 minutes and periodic order matching session to determine the closing price (according to current regulations, securities subject to restricted trading can only be traded in the afternoon trading session by order matching and negotiation method).

Previously, the KRX system was expected to start operating from May 2. However, at the end of April, the State Securities Commission (Ministry of Finance) issued an urgent dispatch, informing that the system could not be put into operation yet.

According to the report from HOSE, the KRX system at that time did not have a general acceptance record between the investor, contractor and beneficiaries, which did not ensure compliance with regulations. At the same time, the HOSE report also did not show that the KRX system had been approved by the managing unit for information security level (level 4) according to regulations...

The State Securities Commission believes that there is not enough basis to approve HOSE's proposal to officially put the KRX system into operation on May 2.

Source: https://thanhnien.vn/van-hanh-he-thong-chung-khoan-krx-tu-ngay-55-18525042415533332.htm