HCMC stock exchange to test South Korean system

Vietnam’s overloaded main bourse, the Ho Chi Minh Stock Exchange, next week will begin testing a new system from South Korea which it plans to use later this year.

The system would have the capability to handle “many times more” transactions than now, Le Hai Tra, CEO of the exchange, said.

A temporary system from FPT, which has been tested in recent months to deal with the overload, would serve as a backup, he added.

HoSE signed a deal for the system in 2012 with the Korea Exchange at a cost of VND600 billion ($26.16 million).

But since last year South Korean experts could not come to Vietnam due to the Covid-19 pandemic, and so installation was delayed.

A record number of new investors in recent times has placed an extreme strain on HoSE’s outdated system.

The bourse increased the trading lot from 10 shares to 100 and instructed brokerages to stop order changes and cancelations to reduce the number of transactions.