New stock trading system KRX must come on stream in 2025: regulator

The State Securities Commission (SSC) of Vietnam has demanded stock exchanges and related entities to launch the new stock trading system KRX in 2025.

At a December 12 conference of the Vietnam Stock Exchange (VNX) to review its 2024 performance and set out tasks for next year, SSC chairwoman Vu Thi Chan Phuong requested the Ho Chi Minh City Stock Exchange (HoSE), the Hanoi Stock Exchange (HNX), and the Vietnam Securities Depository (VSDC) to complete the implementation of the KRX system within next year.

She emphasized the need for these entities to enhance their information technology and trading systems to support the country's market status upgrade.

“The VNX and its subsidiaries must be more proactive in anticipating challenges during the market status upgrade and in the operation of the new IT infrastructure,” she noted.

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.

This project, approved in 2012, aims to modernize Vietnam’s stock trading and settlement infrastructure.

In addition to the HoSE, the HNX and the 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.

Originally slated for completion in 2021, the KRX faced delays and has yet to be fully operational. In early 2024, the HoSE conducted trial runs on the systems of securities companies. However, by the end of April 2024, the major bourse announced that securities firms would temporarily suspend plans to transition to the new system.

At the conference, the SSC chairwoman also outlined a roadmap for the development of new products in Vietnam's securities market in 2025. Among these is the introduction of the VN100 futures contract, which is expected to launch in Q1/2025.

The SSC will also explore options for classifying listed stocks and develop new products, indices and markets for small- and medium-sized enterprises (SMEs) as well as innovative startups.

Phuong stressed the importance of strengthening inspection and supervision of securities firms, and enhancing public awareness of the securities market. She also called for increased training for investors and market participants.

Vietnam's benchmark VN-Index, representing the HoSE, fell 0.16% to 1,261.72 points on Tuesday, with foreign investors net selling for the seventh session. The trading value on the major bourse decreased by 6% to VND12.09 trillion ($475 million).