Livings Critical eXchange (KRX) system successfully starts operation
Rewritten Article:
📱💥 New Kid on the Block: KRX System Revolutionizes Vietnam's Stock Market 💥📱
HÀ NỘI - After more than a decade in the making, the Hồ Chí Minh Stock Exchange (HOSE) welcomed the much-anticipated KRX trading system on Monday, setting the stage for transformational changes to trading practices and boosting market transparency and efficiency.
The system, equipped with technological expertise courtesy of the Korea Exchange (KRX), promises a wave of innovation to modernize and standardize Vietnam's stock market operations.
The trading floor erupted with enthusiasm as the market opened following a much-needed holiday, mirroring investor optimism. However, the session began on a relatively sluggish note, with some investors reporting minor delays and initial rough patches during the opening auction. Luckily, these minor hitches were swiftly ironed out, enabling the session to progress more smoothly thereafter.
The KRX system is a high-tech platform thoughtfully crafted to streamline Việt Nam's stock market operations. With a total investment of approximately VNĐ900 billion (US$34.7 million), the system boasts an array of powerful new features, including updates to trading orders, improved functionalities tailored for retail investors, and a solid foundation for future reforms.
Despite delays, the project finally completed extensive testing throughout 2024 and is finally ready for action.
One key alteration brought by the KRX system is the adjustment to the handling of ATO (At-the-Opening) and ATC (At-the-Closing) orders. Unlike before, these orders no longer receive priority over limit orders (LO) during periodic matching phases. Instead, they're displayed at a specific price level, keeping them on a level playing field with LO orders rather than being labeled 'ATO' or 'ATC'.
Another significant modification affects the procedure for modifying or canceling orders. Under the new system, investors can no longer simultaneously amend both price and quantity in a single transaction. Adjusting the price or increasing the order size resets the priority, while lowering the volume doesn't. In line with the past, order cancellations and modifications are still restricted during ATO and ATC sessions.
A notable overhaul is the replacement of the traditional market price order (MP) with the market-to-limit order (MTL). If an MTL order isn't fully matched, the remaining portion automatically transforms into a limit order (LO) with a price adjusted by ±1 tick from the initial request - enhancing price control during execution.
The KRX system also uplifts negotiated trades and odd-lot transactions. In the new system, both the buyer and the seller can input orders directly, with the other party confirming the trade, representing an improvement over the past system where only sellers entered orders. Completed negotiated trades are now non-refundable or modifiable.
Retail investors stand to benefit from expanded odd-lot trading capabilities. With the new system, continuous odd-lot limit orders (LO) can be placed from 9am to 2.45pm – a significant upgrade from the past when they were limited to continuous matching or negotiated trade sessions.
Before the launch, HOSE and its technology partners conducted one final round of rigorous system testing on May 4 to ensure all stakeholders were fully prepped.
An investor placing an order from a mobile app. VNA/VNS Photo
Major securities firms, including SSI, ACB Securities, and Bảo Việt Securities, have reported successful system conversions and are geared up for the first official trading session on the new platform.
Other brokerage houses, such as MB Securities, Shinhan Securities, Việt Dragon, VCBS, BVSC, and DNSE, have similarly reported the completion of mandatory upgrades, including data reconciliation and system connectivity. These players feel confident that the KRX platform will significantly improve order handling, streamline retail trading, and facilitate smoother integration of foreign investor transactions and securities under trading restrictions.
The official rollout of the KRX system marks the completion of a 13-year journey of planning, investment, and technical cooperation. As a crucial milestone for Việt Nam's capital market development, it lays the groundwork for future advancements in market infrastructure, investor experience, and regulatory oversight. This upgrade aims to propel Vietnam's capital market from frontier status to emerging market status, paving the way for further growth and investment opportunities. 🌱🚀
- AI-powered technology, provided by the Korea Exchange (KRX), underpins the newly implemented KRX trading system, transforming Vietnam's stock market operations.
- The KRX system, following rigorous testing throughout 2024, is poised to revolutionize trading practices, boosting market transparency and efficiency in Vietnam's finance business.
- Some initial delays and rough patches were experienced during the opening trading session, but these minor hitches were swiftly addressed, ensuring smooth progress thereafter.
- The KRX system offers updated trading orders, improved functionalities tailored for retail investors, and a robust foundation for future reforms, all funded by an investment of approximately VNĐ900 billion (US$34.7 million).
- With the KRX system, ATO (At-the-Opening) and ATC (At-the-Closing) orders no longer receive priority over limit orders during periodic matching phases; instead, they are displayed at a specific price level.
- Major securities firms like SSI, ACB Securities, and Bảo Việt Securities have completed system conversions, while other brokerage houses such as MB Securities, Shinhan Securities, Việt Dragon, VCBS, BVSC, and DNSE have completed mandatory upgrades - all confident that the KRX platform will significantly improve order handling, streamline retail trading, and facilitate smoother integration of foreign investor transactions and securities under trading restrictions.
