Vietnam considers midday and same-day stock trading

Vietnamese stock investors may soon be able to trade through the midday break and sell shares that are still "in transit" thanks to the implementation of the new KRX trading system, according to Vietnam Securities Depository and Clearing Corporation.

At a conference themed “Legal Framework and Capital Mobilization Solutions for Enterprises,” held on Thursday in Ho Chi Minh City, Ta Thanh Binh, CEO of the corporation (VSDC), stated that the legal framework and systems to support midday trading and same-day selling of "in-transit" shares are ready, pending final decisions from competent authorities.

Specifically, the KRX system will integrate and unify the operations of both the underlying and derivatives markets with clearing and settlement processes into a single platform.

This means the market will shift from multiple disconnected systems, including the separate systems for Hanoi and HCMC stock exchanges and a different one for clearing, to a centralized technology infrastructure.

The KRX system offers some of the world’s most advanced trading methods. However, whether and when these features are implemented in Vietnam depends on regulatory perspectives and the development level of the market.

For example, while the KRX system supports trading without price fluctuation limits, Vietnam is not yet ready for such a change.

In the short term, however, several notable new features are expected to be rolled out. According to Binh, the State Securities Commission is considering extending trading hours, possibly allowing trading through the lunch break, or lengthening morning and afternoon sessions by shortening the midday break.

The adoption of T+0 trading (same-day trading) is also being studied, which would allow investors to buy and sell the same volume of securities within the same day without triggering securities settlement, only cash settlement by the end of the day.

In addition, investors may be allowed to sell securities that are "on the way", meaning they won't have to wait for the standard T+2 settlement cycle.

At the same conference, in response to a question about cryptocurrency exchanges, Binh clarified that these are not state-operated exchanges. Instead, the government will officially recognize and license a limited number of private digital asset exchanges to operate in Vietnam. While the exact number has not been disclosed, it is expected to be no more than five platforms.

The VN-Index, which represents the Ho Chi Minh Stock Exchange (HoSE), closed Friday at 1,630 points, down nearly 11 points from the previous day, marking its first decline after a nine-session winning streak. It was also the sharpest drop since July 29, when the market plunged 64 points.

On the HoSE, 261 stocks declined, three times the number of gainers, accounting for nearly 70% of all listed stocks on the bourse. Total trading value on the major bourse reached nearly VND59.1 trillion ($2.25 billion), up VND6.3 trillion day-on-day.

Market sentiment also turned more negative as foreign investors sharply increased their net selling to the tune of VND3.02 trillion ($114.96 million) on the HoSE, the highest level since the August 4 session.