Responding to **VTC News**, Mr. Nguyen The Minh, an analyst at Yuanta Securities, stated that the KRX system has been postponed for a long time and if it is deployed as scheduled, it will first boost investor sentiment and optimism because they expect KRX to overcome previous errors and congestion experienced with the old system.
Moreover, the smooth operation of KRX will contribute to creating stability and connectivity in the market, allowing for the integration and improvement of financial products.
“Previously, we lacked products such as fund certificates, derivatives or covered warrants. When KRX is activated, these products will be integrated into the system, leading to easier liquidity in the market,” Mr. Minh explained.
However, Mr. Minh also emphasized: “”We must also consider the risks when this new system is launched, as with any other system. Therefore, contingency plans should be proactively developed to address any unexpected incidents that may occur.”
HoSE plans to launch the new KRX trading system on May 2nd. (Illustrative photo)
Sharing the same view, Ms. Hoang Viet Phuong, Director of the Investment Analysis and Consulting Center at SSI Securities, stated that if KRX is launched, it will contribute to unlocking the market and creating a larger market size.
“KRX can enable multiple products to run on the system that the previous system could not support, of course, if there are no errors,” Ms. Phuong said.
However, Ms. Phuong believes that these positive impacts will be long-term rather than immediate. She also noted that any system, whether newly launched or long-standing, can encounter unexpected incidents and therefore proactive measures should be in place.
KRX is an information technology system designed by the Korea Exchange (KRX). It offers various new features, the most notable of which is support for investors to trade odd lots on a separate board and execute same-day stock purchases and sales (T+0).
The design, supply, installation, and transfer contract of the information technology system was signed between HoSE and KRX in 2012 with a value of 600 billion VND.
HoSE initially planned to complete the system in 2021, but it has been repeatedly delayed since then. The latest plan was to officially operate the new information technology system by the end of 2023, but it has been postponed again.
In preparation for the official launch of KRX, HoSE conducted two system test runs earlier this year.
According to the latest announcement by HoSE, on April 24-25, brokerage firms will conduct connectivity tests with the Ho Chi Minh City Stock Exchange.
On April 26th, end-of-day data will be transferred to the exchange’s new trading system. During the three days of April 27-29, HoSE will migrate its trading system. At the end of April 30th, HoSE will announce the official deployment of the new trading system and set the go-live date as May 2nd, with end-of-day data from April 26th serving as the trading data.
“In case the migration cannot be completed, brokerage firms should be prepared to continue trading on the existing system,” HoSE noted.
KRX has been highly anticipated by investors, brokerage firms, and analysts, who believe it will bring a new momentum to the market in the long term. Recent news about the testing phases and the promise of its operation has significantly boosted the stock prices of companies in the brokerage sector and the overall market index.
On the news of KRX’s imminent launch, the VN-Index closed trading on April 22nd, up 15.37 points or 1.31% to 1,190.22 points. On the HoSE, there were 374 advancing stocks and 114 declining stocks, with 59 stocks remaining unchanged. The HNX-Index gained 4.51 points to 225.31 points, with 140 advancing stocks, 44 declining stocks, and 38 stocks remaining unchanged. The UPCoM-Index rose by 0.87 points to 88.02 points. Notably, the VN30 basket had 23 gainers.
