Vietnam securities depository is fixing the T+2 settlement error

Vietnam’s securities depository said it is working to resolve a delay in T+2 securities settlement caused by maintenance on the KRX trading system.

Vietnam Securities Depository and Clearing Corporation (VSDC) said the settlement process for certain transactions had not been completed, affecting government bonds and listed corporate bonds bought on February 26 (Thursday), as well as stocks, fund certificates and covered warrants purchased on February 25 (Wednesday).

As a result, securities scheduled to be credited during the afternoon trading session on February 27 (Friday) could not be processed until further notice, brokerage firms said in notices citing the depository.

T+2 settlement means "trade date plus two days" representing a securities transaction cycle where the exchange of ownership and cash payment occurs two business days after the trade is executed.

Several securities firms confirmed receiving the notification. One brokerage executive said VSDC was coordinating with the KRX contractor to check the system and had not yet been able to transmit settlement messages to brokers, delaying T+2 settlements. Firms would be informed once settlement is completed, the executive added.

A VSDC official told The Investor that the settlement system was experiencing technical issues and management was meeting to agree on remedial measures.

“The KRX system is under maintenance, so T+2 settlement has been delayed compared with regulations,” the official said, adding that VSDC had reported the issue to the State Securities Commission of Vietnam and that efforts were under way to fix the problem.

The official said similar incidents had occurred before and could be resolved within 24 hours.

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

The official launch of the new KRX trading system on May 5, 2025, after more than a decade of preparations, marked a pivotal turning point for Vietnam’s stock market status upgrade

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.