Vietnam’s Ho Chi Minh City Stock Exchange (HoSE) has officially launched its new KRX trading system, ten years after it was first conceived, VietnamNet has reported. It’s hoped the new system will improve liquidity, trading efficiency, and pave the way for a market status upgrade.
Key improvements mentioned in the article include:
- Order matching reform: ATO/ATC orders no longer have priority over earlier limit orders and now display prices like regular orders
- Order editing: Price or volume increases reset time priority; volume decreases do not
- Market order changes: MP orders replaced by MTL (Market-To-Limit); unmatched volume converts to limit order at ±1 tick
- Odd lot trading expanded: Can now be traded continuously from 9:00 to 14:45
- Negotiated trading update: Both buyer and seller can initiate and confirm trades
- Foreign investor room: Now updates immediately upon order placement
Expected outcomes include:
- Liquidity boost: Analysts expect daily trading value could rise 30–70%, potentially adding up to US$4 billion per session
- New trading features (upcoming): Intraday (T+0) trading and short selling to be introduced—key steps toward global norms
- Clearing and settlement: Shorter settlement times expected, enhancing capital turnover
- Market upgrade potential: Enhancements set the stage for FTSE/MSCI reclassification from ‘frontier’ to ‘emerging’ market
- Beneficiaries: Securities firms seen as prime winners due to higher trading volumes
The KRX system is a long-awaited leap forward for Vietnam’s stock market, boosting transparency, bringing it more in line with international practices, and positioning the stock market to attract deeper institutional investment flows.
See also: Securities Industry in Vietnam