The Securities Commission did not approve KRX for operation on May 2

The State Securities Commission has just sent an express dispatch to stock exchanges and the Securities Depository and Clearing Corporation (VSDC), on the operation of the KRX information technology system.

Specifically, the Securities Commission said that the Ho Chi Minh City Stock Exchange (HoSE) submitted to the committee a proposal to approve the official operation of the KRX information technology system without reporting to the Ministry of Finance and the Department of Transport. Vietnam stock exchange (VNX) and without the opinions of beneficiaries such as HNX and VSDC do not ensure compliance with legal regulations.

According to the content of HoSE’s report sent on April 25, the KRX system does not have a comprehensive acceptance record between the investor, contractor and beneficiary units, which means it does not ensure compliance with applicable investment management regulations. Apply information technology using state budget capital.

HOSE’s report also does not show that the KRX information technology system has been subjectively approved by the unit for information security level (level 4) according to Government regulations.

The Securities Commission also said that there is no official document from members regarding the readiness to connect to the KRX information technology system, as well as the ability to provide securities services to investors after connection. .

Right on April 25, the Securities Commission issued an official dispatch requesting the exchanges and VSDC to report and have a plan to resolve issues related to the KRX information technology system.

This agency also affirmed that “there is not enough basis to approve HoSE’s proposal to put the KRX information technology system into official operation on May 2, 2024”.

Previously, on April 21, HoSE sent an urgent notice to securities companies about the plan to convert to a new trading system in preparation for official implementation.

Specifically, according to the document, on April 30, the securities company performs a conversion test (Cutover test). The transaction date on the system according to HoSE will be May 2, 2024, accordingly, transaction data is the data as of the end of April 26.

KRX is an information technology system that operates and manages transactions on the Korean stock market, with HoSE signing a technology transfer agreement with the Korean Stock Exchange (KRX) in December 2012.

The bidding package for designing, supplying, installing and transferring this information technology system is worth about 600 billion VND, HoSE is the investor.

KRX was initially expected to be completed in 2015, but has not officially “go live” yet.