KRX system expected to run at the end of 2023
After 11 years of waiting, all efforts will be made to bring the KRX system online.
All measures will be taken to put the KRX system into operation at the end of this year, said Nguyễn Thị Việt Hà, Acting Chairman of the Hồ Chí Minh Stock Exchange (HoSE).
A meeting among members of the Vietnamese stock market was organised at the headquarters of HoSE on Monday to discuss the plan to implement the KRX information technology project.
Speaking at the event, Hà said that the rate of testing the KRX system among members is still low, with just 25 out of 76 securities companies completing 100 per cent functional testing.
A similar situation occurred at the Hà Nội Stock Exchange (HNX) and the Vietnam Securities Depository and Clearing Corporation (VSDC), raising concerns among testing bodies.
According to Hà, the Vietnam Stock Exchange (VNX) is working with both HoSE and HNX to correct the legality, trying to match the legality with the time of implementing the new system.
As planned, the KRX system will be officially launched in December this year. However, it is expected that new features will not be fully implemented immediately. The KRX system will operate with basic features, and new features will be deployed step by step according to the roadmap.
"The Ministry of Finance (MoF) has been directed to put the KRX system into operation by the end of this year. If market participants and securities companies are not prepared, organisers will have to take action and cannot wait for the securities firms. If the securities companies are not ready, the investor, HoSE, will still continue, and the securities companies will bear the losses," Hà said.
Earlier this year, Nguyễn Đức Chi, Deputy Minister of MoF, said that HoSE needed to operate the KRX system according to the project's schedule, ensuring the smooth operation of the market continuously and effectively, while coordinating to implement the restructuring of the market, focusing on stabilising the market and strengthening supervision.
The exchange also needs to ensure a safe and transparent market and actively cooperate with the VNX to complete the regulations and operating procedures, Chi added.
The KRX system is an information technology system for managing and operating transactions on the Vietnamese stock market, signed by HoSE with the South Korea Stock Exchange (KRX) in 2012.
The project aims to upgrade the technology system and infrastructure of the stock exchange in Việt Nam.
Due to many reasons, such as the pandemic and the complex nature of the bidding package, the KRX system has not yet run as planned.
The KRX system is expected to bring new products, trading, and payment solutions to the Vietnamese stock market, such as T+0 settlement, short selling, and option contracts. This will create a premise to solve the bottlenecks and move towards upgrading the market from frontier to emerging. — VNS
