KRX trading system to go live on Monday: A 'pivotal milestone' for Vietnam's market status upgrade

The official launch of the new KRX trading system on May 5, after more than a decade of preparations, will mark a pivotal turning point for Vietnam’s stock market status upgrade, said Nguyen Duy Hung, chairman of leading broker Saigon Securities Inc. (SSI).

The system is expected to usher in a more modern, efficient trading era with the introduction of new derivative products, significantly enhancing market liquidity and transparency, Hung wrote on his Facebook page.

“This critical technological leap provides the groundwork for global index providers like FTSE Russell and MSCI to consider upgrading Vietnam's market status, which could help attract stronger international capital inflows,” he added.

In preparation for the system’s rollout, teams from the Ho Chi Minh Stock Exchange (HoSE) and securities firms, including SSI, worked around the clock throughout the five-day National Reunification and May Day holiday (April 30-May 4).

To support the transition, KB Securities Vietnam (KBSV) announced a system upgrade from 4:30 p.m. on Tuesday to 11:59 p.m. on Sunday. During this period, online trading and fund transfer services - both digital and at physical counters - were temporarily suspended.

SSI also temporarily paused its online trading operations from 5 p.m. on April 29 to 6 a.m. on May 5 for system upgrades and maintenance.

Meanwhile, DNSE Securities began its transition on April 29 at 5 p.m., concluding at 6 p.m. on May 4, aligning with the HoSE's KRX implementation plan.

As of midday on May 4, many securities firms were still conducting maintenance on their trading platforms. However, Viet Dragon Securities (VDSC) announced successful integration with the KRX system on late May 3. Its clients can now access the iDragon trading platform (via web and app) with updated data from the May 5 session.

Other VDSC services, including the liveDragon pricing board, eduDragon, smartDragon, goDragon, and online bank transfers, are fully operational.

The KRX system is a comprehensive information technology platform designed to manage and oversee trading on Vietnam’s securities market. The HoSE is the primary developer, with the Korea Exchange (KRX) as the project’s partner.

The project, approved in 2012, aims to modernize Vietnam’s stock trading and settlement infrastructure. In addition to the HoSE, the Hanoi Stock Exchange (HNX) and the Vietnam Securities Depository and Clearing Corporation (VSDC) are also key beneficiaries of the KRX system.

The new platform is expected to enhance the trading and settlement capabilities of the market, introducing advanced features such as same-day trading (T+0), short selling, reduced settlement time, options contract, and the availability of a central counterparty clearing (CCP) system.

Previously, the HoSE announced seven expected changes in trading regulations in the Vietnamese stock market when the KRX system is applied.

Firstly, when the KRX system is applied, ATO/ATC (at-the-open/at-the-close) orders will not be given priority over limit orders already entered into the system during the matching session. Currently, ATO/ATC orders are prioritized over limit orders.

Secondly, investors can modify the price or volume of limit orders (LO) that have not been executed or the remaining part of unexecuted orders during continuous matching sessions.

Thirdly, investors will no longer be able to modify or cancel throughput transactions that have already been executed in the trading system.

Fourthly, regarding foreign investor transactions, for matched transactions of stocks and closed-end fund certificates, the foreign investor quota will decrease when a foreign investor’s buy order is entered into the trading system. At present, the quota decreases only after the buy order is executed.

For throughout transactions of stocks and closed-end fund certificates, the foreign investor quota will decrease when a foreign investor's buy order is entered into the trading system for a throughout transaction. Currently, the quota decreases only after the negotiated transaction between foreign and domestic investors is executed.

Fifthly, odd lot transactions will be conducted through periodic matching, continuous matching, and throughput, instead of only continuous matching and throughput as present.

Sixthly, securities with trading restrictions will be available for trading all day and will follow the periodic matching method.

Seventhly, in a periodic matching session, the best three bid and ask prices displayed will be the best remaining bid and ask prices expected after order matching. Currently, the best three bid and ask prices of all orders in the order book are displayed.

Coinciding with the KRX system’s go-live, the HoSE is also unveiling a redesigned interface for its official website at www.hsx.vn.

According to a HoSE representative, the upgraded website is not merely a channel for information disclosure, but a platform to connect investors. It aims to deliver accurate, timely market information in multiple formats, stimulate investor interest, and serve as a bridge between regulators, market organizers, participants, and the investing public — all in support of Vietnam’s capital market development.