HOSE has had connection problems many times. Photo: HH
Selling pressure to take profits is a common phenomenon after every strong market increase, it occurs even when the medium and long-term trend is an uptrend.
Today’s decrease is sometimes quite strong, partly due to the phenomenon of flickering and disconnection in the trading panels of some securities companies with HOSE.
Some securities companies such as TCBS, FPTS, VND, MBS, HCM, SSI… have announced the phenomenon of transaction interruption to investors.
Waiting for the KRX trading system to break out
The incident occurred in the context that HOSE last weekend sent a document to securities companies about the first system conversion exercise plan of the KRX Information Technology Project. Accordingly, from March 4-8, HOSE will change the system.
According to HOSE, securities companies prepare the system for scheduled conversion, perform system testing and cutover test (check the conversion) on March 7. From March 11-15, securities companies will test entering trading orders, ensuring it operates like a normal trading day. HOSE notes that the first day on the system is March 4. Data for the first trading day is data as of the end of March 1.
Today’s incident does not seem to be serious and it occurred when HOSE was in the sprint phase before operating the new KRX system.
KRX is an information technology system designed by the Korea Stock Exchange (KRX). KRX system is invested by HOSE, signed with KRX in 2012. Total investment is about 900 billion VND.
This is a system that is expected to help liquidity skyrocket, solving the congestion phenomenon that happened in 2020-2021. At the same time, it will bring a new breeze to the stock market.
KRX is expected to bring new products, trading and payment solutions to the Vietnamese stock market such as intraday trading, selling securities on the way home, short selling to shorten payment time…; creating a premise for resolving bottlenecks to move towards upgrading the market from marginal to emerging such as central clearing, improving infrastructure quality…
Vietnam’s stock market is assessed to have positive prospects in the medium and long term. This is a channel that can welcome large cash flows in the context of low deposit interest rates, high expectations for upgrading and converting the trading system, while the world economy is less gloomy, technology stocks Global AI is on the rise.
Previously, from late 2020 to early 2021 HOSE experienced order congestion that lasted for many months when the number of new investors entering the market increased dramatically. A series of measures have been introduced such as: increasing trading lots from 10 to 100 stocks and fund certificates; Temporarily transfer some listed businesses from HOSE to HNX or many securities companies agree to limit the editing/cancellation of orders.
Order congestion continues to occur in May and June 2021. The speed of increasing liquidity is fast while the HOSE system is old, with the capacity to handle about 900 thousand orders/day, lower than about 30 million of the Hanoi Stock Exchange (HNX).
The Ministry of Finance has chosen FPT to handle system overload at HOSE. Accordingly, FPT brought the software of the HNX system to HOSE and revised the trading system to suit HOSE, edited the order receiving system of HNX according to the connection standards of securities companies and integrated the trading system. This new system enters HOSE’s existing systems and related systems such as VSD… The new system built by FPT for HOSE has a system capacity that has increased 3 times compared to the previous one, reaching 3-5 million orders/day. .
