Investors conduct transactions on computers at a trading floor. — VNA/VNS Photo
The Hồ Chí Minh Stock Exchange (HoSE) initiated a trial run of the new KRX information technology system on March 4, after a delay in its official launch since last year.
In a recent document sent to securities firms, HoSE revealed a plan to begin testing the new KRX information technology system from March 4 to 8.
HoSE has directed securities companies to prepare their systems for the transfer, undertake system checks, and perform a cutover test on March 7.
From March 11 to 15, securities companies will conduct a trial of order placement and trading activities to guarantee seamless operation, simulating a normal trading day.
HoSE has stressed that the system's first operating day will be on March 4, with data for the initial trading day based on the end-of-day data recorded on March 1st.
KRX is an information technology system created by the Korea Exchange (KRX) and implemented by HoSE. This system introduces several new features, the most prominent being the support for retail investors to trade on a dedicated platform and conduct same-day buying and selling transactions (T+0).
HoSE and KRX inked a contract in 2012 for the design, supply, installation and transfer of the information technology system, totalling VNĐ600 billion (US$24.3 million).
Initially, the deployment of the KRX system was projected to span approximately 18 months, with official operation set for the first quarter of 2015.
However, the system has faced persistent delays and setbacks, extending the rollout schedule to nearly 10 years.
Numerous investors, securities companies, and analytical entities have praised the KRX system with the idea that it would serve as a new long-term market catalyst.
Recent information about the system's testing and approaching operation has greatly boosted stock prices in the securities sector and the market benchmark index.
In their annual release report, KB Securities Vietnam (KBSV) expected that the new system may raise the VN-Index's average daily trading value by 30-70 per cent from the previous five-year average liquidity.
KBSV believes that the activation of KRX will help meet the remaining conditions for a market upgrade as per FTSE Russell's rankings.
Previously, at the New Year's gong beating ceremony at HoSE, Nguyễn Thị Chân Phương, chairwoman of the SSC, highlighted that the official launch date of KRX is not solely dependent on the regulatory body or HoSE as the investor, but also requires the collaborative participation of market members, particularly securities companies.
"Through the guidance of the Ministry of Finance and the coordination of the State Securities Commission, the new information technology system will commence its operations soon," Phương said. — VNS