The highly anticipated launch of the KRX stock trading system is expected to have a substantial impact on the market, experts predict.

During the recent annual general shareholders' meeting of Việt Dragon Securities Co for fiscal year 2024, CEO Nguyễn Thị Thu Huyền revealed that the KRX system is scheduled to commence operations in early May, barring any changes.

Participating securities companies have successfully passed the assessment conducted by the exchange and the Việt Nam Securities Depository (VSD), she said.

Trần Hoàng Sơn, the Market Strategy Director of VPBank Securities Joint Stock Company, anticipates a substantial impact on both liquidity and products in the market. He said that the new trading infrastructure of the KRX system will address the historical issues of order congestion and delays during periods of market expansion, ensuring smoother transactions. The upgraded trading infrastructure will enable faster trading for investors and facilitate automated trading for various organisations.

In the first-quarter report, KB Vietnam Securities (KBSV) estimated that the new system would boost the average daily trading value of the VN-Index by 30-70 per cent compared to the recent five-year average liquidity. KBSV stated that the launch of the KRX system would fulfil the remaining requirements for market elevation according to the classification by FTSE Russell.

Chairwoman Nguyễn Thị Việt Hà of the HCM City Stock Exchange (HoSE) confirmed the completion of the final phase of end-user testing with KRX. The exchange is committed to implementing the system within this year.

The KRX system, designed by the Korea Exchange (KRX), is an advanced information technology solution. Notable features include support for individual investors to trade on a separate board and the ability to execute same-day buying and selling (T+0) of stocks. The contract for the design, supply, installation and transfer of the information technology system was signed between HoSE and KRX in 2012, with a value of VNĐ600 billion.

The KRX system, which was invested in by HoSE and launched in 2012, benefits not only HoSE but also the Hà Nội Stock Exchange (HNX) and the Vietnam Securities Depository (VSD) as beneficiaries of the system. —VNS