Multiple brokerage firms have sent notices to their clients regarding the upgrade and implementation of the new KRX system according to recent updates.
Specifically, Bao Viet Securities (BVSC) has announced that the plan to upgrade and transition to the new KRX system will be halted during the holiday period of April 30th- May 1st. As per the notice from BVSC, all services that were temporarily unavailable during data migration and system testing have been restored with full functionality to facilitate trading and inquiries.
Source: BVSC
Vietcombank Securities (VCBS) also sent a notice to investors on the afternoon of April 26th, stating that the implementation of the KRX system would be postponed and the current system would continue to operate as before. Clients can continue using the products and services currently offered by VCBS, and conditional orders for underlying assets and derivatives will be re-enabled for client use. Updates regarding the KRX system implementation will be provided in subsequent announcements.
Similarly, Vietcap Securities (Vietcap) has issued a notice halting the implementation of the new trading system (KRX). Vietcap stated that the official rollout of the KRX system would not occur at this time, and therefore, on May 2, 2024, Vietcap’s existing trading system would continue operating normally.
Other companies such as BIDV Securities (BSC) and KB Securities Vietnam (KBSV) have also announced changes to their system upgrade plans, pausing the migration to the KRX trading system and continuing to operate their current systems. Online trading channels will remain available for clients’ access.
Source: KBSV
Earlier, in Official Letter No. 700/SGDCKHCM-HTGD dated April 21, 2024, HoSE announced that it had sent an urgent notice to brokerage firms regarding the migration plan for the new trading system (KRX) in preparation for its official launch.
As per the plan, brokerage firms were scheduled to test their connections to HoSE on April 24th and 25th. On April 26th, end-of-day data would be transferred to the new trading system. Brokerage firms were required to prepare their data proactively for the Cutover Test.
From April 27th to 29th, HoSE would implement the trading system migration. Brokerage firms were advised to plan and execute preparatory measures to ensure a coordinated rollout. On April 30th, brokerage firms would perform the Cutover Test. The official launch of the new trading system was scheduled for May 2nd.
Consequently, many brokerage firms sent out system upgrade notices ahead of the KRX “go-live” date of May 2nd. Most companies indicated that they would suspend services from the evening of April 26th to May 1st (coinciding with the holiday period) to facilitate the transition to the new KRX trading system.
However, on April 25th, the State Securities Commission issued an urgent official letter regarding the operation of the KRX system. The letter stated that, based on the Securities Law, HoSE’s proposal to the State Securities Commission for approval to officially operate the KRX information technology system without a report from the Ministry of Finance, the Vietnam Stock Exchange, or input from beneficiary units was not in compliance with legal regulations. The KRX system currently lacked a comprehensive acceptance protocol between the investor, contractor, and beneficiary units. HoSE’s report also failed to demonstrate that the KRX system had been approved by the competent authority for information security level (level 4) as required by regulations. There was no official documentation from members regarding their readiness to connect to the KRX system or their ability to provide securities trading services to investors after connecting to the KRX system.
In conclusion, the State Securities Commission stated that there was insufficient basis to approve HoSE’s request to put the KRX system into official operation on May 2, 2024.
On April 26th, HoSE issued a document to brokerage firms, requesting that they halt the implementation of the trading system migration plan based on the current implementation status.
