Vietnam’s State Securities Commission said there are not yet sufficient grounds to approve the official operation of the KRX System from 2 May 2024.
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The State Securities Commission has just sent a urgent official letter to the trading centers and the Securities Depository and Clearing Center (VSDC) in response to a proposal from the Ho Chi Minh City Stock Exchange (HOSE) on the approval of the official operation of the KRX Information Technology System (KRX system). The State Securities Commission said that HOSE‘s submission to this agency to propose the approval of the official operation of the KRX system without a report from the Ministry of Finance, the Vietnam Stock Exchange (VNX), and without comments from the beneficiary units (Hanoi Stock Exchange (HNX) and VSDC) has not ensured compliance with the legal regulations.
In addition, according to the content of Document No. 4 of HOSE, the KRX information technology system currently does not have a general acceptance report between the investor, the contractor, and the beneficiary units (HNX, VSDC), which has not ensured compliance with Decree 73/2019 on the management of investment in the application of information technology using state budget funds.
The document of HOSE does not show that the KRX information technology system has been approved by the competent authority for the information security level (level 4) as stipulated in Circular 12/2022 of the Ministry of Information and Communications.
Regarding the preparation of the members, the State Securities Commission said that there is currently no official document from the members on the readiness to connect to the KRX information technology system as well as the ability to provide securities services to investors after connection.
Regarding the plan for the case of returning to the old system stated in document number 4 of HOSE, the State Securities Commission requested that the exchanges and VSDC ensure that the current trading, registration, depository, and clearing and settlement systems operate safely, stably, and smoothly in all situations.
Based on the above content, the State Securities Commission has insufficient basis to approve the proposal of HOSE to put the KRX information technology system into official operation on 02 May 2024.
The State Securities Commission requires the Exchanges, VSDC to be responsible before the law for ensuring that the current trading, registration, depository, clearing and settlement systems operate safely, stably, and smoothly in all situations.
The KRX system is an information technology system for managing and operating trading on the Vietnamese stock market, invested by HOSE and implemented by the Korea Exchange (KRX). This project has been signed and implemented since 2012.
In addition to HOSE as the investor, the beneficiary units of the KRX System also include the Hanoi Stock Exchange (HNX) and VSDC.
The KRX system aims to upgrade the technology systems and infrastructure of the stock exchange in Vietnam. Due to many objective reasons such as the prolonged pandemic, the complicated nature due to the excessively large package… the implementation of the KRX system has not taken place as planned before.
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Previously, the Ho Chi Minh City Stock Exchange announced to the securities companies the plan to switch to the new trading system in preparation for official deployment. Accordingly, on April 24-25: Securities companies check the connection to Ho Chi Minh City Stock Exchange. April 26: End-of-day data will be converted to the new trading system of the Center. Securities companies proactively prepare data to perform conversion testing. April 27, 28 and 29: Ho Chi Minh City Stock Exchange performs conversion of trading system. Securities companies proactively make plans and carry out preparation work for synchronous deployment. April 30: Securities companies perform conversion testing. The trading date on the system is 02 May. Transaction data is end-of-day data on 26 April. Securities companies check seamless transactions on their system with the Center’s new system like a normal trading day, absolutely do not use automatic order entry software and test abnormal, unrealistic situations. At the end of April 30, based on the test results, the Center will notify the official deployment of the new trading system. In case of no official deployment, securities companies proactively prepare the system to continue trading on the current trading system. May 2: Expected official deployment of the new trading system. The securities companies then also introduced the roadmap for upgrading to the new system and reminded investors of a series of important issues. |
