Two investors look at stock prices on a laptop in HCM City. — Photo courtesy of Vietnambiz.vn

The new information technology system for the entire stock market, known as KRX, is expected to be put into operation this year, according to the Ho Chi Minh Stock Exchange (HoSE).

The move aims to tackle system overloads which have troubled investors recently.

The implementation of KRX project was delayed last year due to the COVID-19 pandemic. HOSE would use all available resources to accelerate the implementation of the project this year, it said.

The new system is set up by HoSE with support from the South Korea Exchange, meeting the requirements for Viet Nam’s stock trading, including market information, market surveillance, clearing, settlement and depository and registration.

The KRX’s system will be used on the HoSE-affiliated Ha Noi Stock Exchange as well.

HoSE will work with the Korean side to trial KRX software installation, completing the WAN connection test with securities companies, performing market-wide data to be ready for the trial plan.

HoSE will also accelerate information security projects to improve the safety, security and confidentiality of the trading system.

New cash flow pouring into the market since the second half of 2020 has boosted liquidity. December 2020 and January 2021 saw record matching value of more than VND250 trillion (US$10.8 billion) and more than VND300 trillion on the Ho Chi Minh City Stock Exchange (HoSE), respectively.

However, skyrocketing liquidity has far exceeded market forecasts, leading to frequent congestion in many sessions, causing a lot of trouble for investors and affecting the quality of the market.

The sudden increase in liquidity is unpredictable, causing undesired interruptions in trading, according to HoSE. — VNS