Vietnam major bourse likely to launch new trading platform KRX next month

The Ho Chi Minh Stock Exchange (HoSE) is likely to put into operation its new trading platform Korea Exchange (KRX) in May after several delays, said a brokerage executive.

The bourse is scheduled to complete the second trial run of the KRX today (Tuesday) and most securities companies have passed the HoSE tests, tipped Nguyen Thu Huyen, CEO of Viet Dragon Securities at the firm’s annual general meeting on Monday.

The first trial run took place in early March, followed by a second starting in the second half of the same month.

The HoSE started a project to upgrade its trading platform in 2012 in a partnership with the Korea Exchange. The Hanoi Stock Exchange – the country’s smaller bourse, and the Vietnam Securities Depository (VSD) are two beneficiaries of the upgrade.

The system will introduce new solutions regarding clearing and transactions such as intraday trading, short selling, and shortening clearing times.

The HoSE has yet to announce any instructions on new transaction types, so the KRX system will kick off next month with traditional transactions in the first instance.

According to analysts with KB Securities, once operational, the KRX is expected to improve liquidity and meet some of the criteria necessary for the much-awaited stock market status upgrade. The new system will give a boost to the number of orders placed, speed up order matching; offer T+1 trading, thus shortening clearing times; and diversify products and investment forms.