Vietnam main securities exchange continues to use FPT trading system
In this article (5)
The Ho Chi Minh Stock Exchange will continue to use the trading system developed by FPT while waiting for a replacement from South Korea, Ministry of Finance and bourse officials said.
The system developed by FPT Information System, a subsidiary of the tech giant, in July last year helped cope with the trading load that had become unsustainable for around half a year.
It increased the capacity of Vietnam’s main exchange from 900,000 transactions a day to five million.
On November 19 last year the largest ever number of transactions of 1.84 million was recorded, or just a third of what the system could handle, Dang Truong Thach, deputy director of FPT IS, pointed out.
Deputy Minister of Finance Nguyen Duc Chi said its replacement, KRX, is being developed in South Korea and seen rapid progress.
“It will be ready within months.”
It is being developed under a VND600-billion (US$25.69 million) deal signed in 2012 between HoSE and the Korea Exchange.
It will allow odd-lot trading and a T+0 settlement cycle (meaning investors will receive their shares or money on the day of trade instead of two days later).
For the last 10 years HoSE has repeatedly been missing deadlines for installing a new system.
Questions & Answers
Q.When is the new KRX trading system expected to be ready for the Ho Chi Minh Stock Exchange?
When is the new KRX trading system expected to be ready for the Ho Chi Minh Stock Exchange?
Deputy Minister of Finance Nguyen Duc Chi stated that the KRX system is seeing rapid progress and will be ready within months. This replacement system is currently being developed in South Korea.
Q.What improvements will the new KRX trading system offer compared to the current setup?
What improvements will the new KRX trading system offer compared to the current setup?
The new KRX system will enable odd-lot trading and introduce a T+0 settlement cycle. This means investors will receive their shares or money on the same day as the trade, instead of the current two-day delay.
Q.How significantly did FPT's interim trading system increase the Ho Chi Minh Stock Exchange's capacity?
How significantly did FPT's interim trading system increase the Ho Chi Minh Stock Exchange's capacity?
The FPT trading system increased the exchange's capacity from 900,000 transactions a day to five million. This significant upgrade helped the exchange cope with unsustainable trading loads from July last year.
Q.How much was the deal signed in 2012 for the development of the KRX system?
How much was the deal signed in 2012 for the development of the KRX system?
The deal for the KRX system's development, signed in 2012 between HoSE and the Korea Exchange, was worth VND600-billion, which is approximately US$25.69 million.
Reader pulse
Is delaying the new system a good move?
24,522 votes so far