HoSE announced that securities companies will stop converting the KRX trading system

Ho Chi Minh City Stock Exchange (HoSE) has just sent a document to securities companies about converting the KRX trading system to prepare for official implementation.

Specifically, based on the actual implementation situation, HoSE recommends that securities companies stop implementing the plan to convert the trading system stated in Official Dispatch No. 700/SGDCKHCM-HTGD dated April 21, 2024 of HoSE.

HoSE also recommends that securities companies continue to ensure that the current trading system operates safely, stably and smoothly.

Previously, in Official Dispatch No. 700/SGDCKHCM-HTGD dated April 21, 2024, HoSE said it had sent an urgent notice to securities companies about the plan to convert the new trading system (KRX) to prepare for implementation. official.

According to the plan, on April 24 and 25, securities companies will test the connection to HoSE. On April 26, end-of-day data will be converted to the new trading system. Securities companies are required to proactively prepare data to perform Cutover testing.

During the days from April 27 to 29, HoSE will convert the trading system. Securities companies proactively plan and carry out preparatory work for synchronous implementation.

On April 30, the securities company performed a conversion test (Cutover test). On May 2, the new transaction system is expected to officially deploy.

However, on April 25, the State Securities Commission (SSC) issued an urgent dispatch on information about the operation of the KRX system.

The official dispatch clearly stated that, based on the Securities Law, HoSE submitted to the State Securities Commission a proposal to approve the official operation of the KRX information technology system without reporting to the Ministry of Finance, Vietnam Stock Exchange (VNX) and There is no opinion from the beneficiaries (HNX, VSDC) which means compliance with the law is not guaranteed.

Thus, the fact that HoSE submitted a proposal to officially operate the KRX system without reporting to the Ministry of Finance, the Vietnam Stock Exchange and without the opinions of beneficiary units such as HNX and VSDC is not guaranteed. ensure compliance with legal regulations.

The KRX system currently does not have a comprehensive acceptance record between the investor, contractor and beneficiaries, which means it does not ensure compliance with the provisions of Decree No. 73 dated September 5, 2019 of the Government regulating management. Investment management in information technology application using state budget capital.

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

Regarding members’ preparation, there is currently no official document from members on their readiness to connect to the KRX system as well as their ability to provide securities trading services to investors after connecting to the system. KRX system.

Regarding the plan for returning to the old system mentioned in HoSE’s proposal, the State Securities Commission requested VNX, HOSE, HNX and VSDC to make a report and have a plan to resolve issues related to the KRX system.

Based on the above contents, The State Securities Commission believes that there is not enough basis to approve HoSE’s proposal to put the KRX system into official operation on May 2, 2024..