Temporary trading system to be deployed in three months

14:51 | 31/03/2021
The Ho Chi Minh City Stock Exchange (HSX) and FPT Corporation (FPT) have started building a temporary trading system, aiming to process 3-5 million orders a day.
temporary trading system to be deployed in three months
The number of orders entered on the bourse in many sessions exceeded the designed capacity of the whole system, causing system overloads

Accordingly, HSX and FPT have started building a temporary trading system, aiming to process 3-5 million orders a day, 3.3-5.5 times higher than the current capacity (900,000 orders a day at present). According to FPT's analysis, the expected time to deploy the system is about 3-4 months.

This solution uses the trading software used at the Hanoi Stock Exchange (HNX) and will be deployed on the HSX to replace the current order matching system. This solution minimises the impact and changes to the system of securities companies.

Previously, in an interview with VTV, Le Hai Tra, general director of HSX said that the management has set up a relatively ambitious plan called "100 days". The two sides have also taken the first steps and expect to start testing the first version soon.

According to HSX statistics, the number of new securities trading accounts and trading value has increased dramatically since the beginning of the year. In the group of the 20 largest securities companies, the number of orders entering the floor tripled, while the average increase was 5-6 times, and some companies recorded increases of 13-18 times in the number of orders entering the bourse. The number of orders entered on the bourse exceeded the designed capacity of the whole system on many trading sessions, causing system overloads.

Regarding the solution of raising the trading lot from 10 to 100 in January, leaders of the HSX said that this solution is only temporary and has contributed to reducing the load on the system, helping liquidity increase by 15-18 per cent.

Trading averaged VND14.3 trillion ($621.74 million) a day last month, nearly four times the value a year earlier. However, the phenomenon of system overload has not been handled completely. Despite the change, investors continued to report delays, especially in the afternoon when the trading value rises to around VND15 trillion ($652.17 million).

On March 3, the State Securities Commission also issued documents guiding HSX, HNX, and Vietnam Securities Depository on the transfer of listed shares from HSX to HNX.

To transfer shares from HSX to HNX, enterprises need resolutions from the board of directors or the general meeting of shareholders. After that, enterprises need to disclose information in accordance with regulations, make an application for transaction transfer, clearly stating the expected date of suspension on HSX.

According to HSX, the maximum time to process documents is three working days counted from the date of receipt, while it takes a maximum of four days to stop trading to transfer listing from the HSX to HNX.

As soon as the trading system goes through, the HSX will report to the State Securities Commission and announce the timeline when the shares will be transferred back.

By Thanh Van

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