|
HoSE to launch temporary transaction system in next 3-4 months
The move is seen as a short-term solution to address the issue of surging orders on the Ho Chi Minh City Stock Exchange (HoSE) that force the stock exchange to halt market trading.
The HoSE has been working with leading tech firm FPT on a temporary transaction system capable of processing up to five million transaction orders per day, and scheduled to launch in the next three to four months, stated the stock exchange in an announcement.
Investors at securities firm KIS in Hanoi. Photo: Cong Hung |
The new system would adopt transaction software system from the Hanoi Stock Exchange (HNX), seen as a short-term solution to address the issue of surging orders on the HoSE that force the stock exchange to halt market trading, stated the HoSE.
Addressing the issue of some investors still being able to place transaction orders despite system overload, HoSE said every securities firm is allocated with around 3,000 transaction orders since the start of a trading session.
“The fact that they can still make transaction means some securities firms have not used up their transaction orders,” said the HoSE.
Data from the HoSE revealed in the past three months, the average transaction orders from Vietnam’s top 20 securities firms rose by five to six folds, even 13-18 folds in some cases, causing the system to overload.
Meanwhile, the stock exchange’s decision to raise the minimum trading lot from 10 to 100 shares since January 4 helped improve liquidity by 15-18%.
“However, the overload continues to occur whenever liquidity hit VND15-16 trillion (US$648.2-691.4 million),” it added.
The stock exchange authority also gave permission for public firms to switch their stocks from the HoSE to the HNX until the situation is completely resolved.
However, the move is not applicable for stocks under the VN30 Index, comprised of the 30 largest stocks on the HoSE.
Hanoi Times
|
