What is the KRX stock exchange system? When will the KRX stock exchange system start to operate in Vietnam?

What is the KRX stock exchange system? When will the KRX stock exchange system start to operate in Vietnam?

The KRX stock exchange system is an information technology system for managing and operating transactions in the Vietnam Stock Exchange, developed by the Korea Exchange (KRX) and implemented by the Ho Chi Minh City Stock Exchange (HOSE) in Vietnam starting from May 2nd, 2024.

The KRX stock exchange system is expected to bring many benefits to the Vietnamese stock market, contributing to improving operational efficiency and attracting domestic and foreign investments.

What is the KRX stock exchange system? When will the KRX stock exchange system start to operate in Vietnam? - image from internet

What are principles of organization of securities trading by adopting the centralized order matching method and put-through trading method in Vietnam?

Pursuant to Clause 1 Article 3 of the Circular 120/2020/TT-BTC stipulating organization of securities trading:

Organization of securities trading

1. Every SE shall organize securities trading by adopting the centralized order matching method and put-through trading method according to the following principles:

a) The centralized order matching method executed on the trading system must ensure the principle of prioritizing price and time;

b) The put-through trading method executed on the trading system must comply with the principle that the trading parties negotiate on the trading contents themselves.

2. The securities specified in Clause 1 Article 1 of this Circular shall be traded on the securities trading system, excluding the cases of transfer of ownership out of the securities trading system in accordance with regulations of law on securities registration, depositing, clearing and payment. The SE is allowed to organize buy-in sessions through the securities trading system.

3. The VSE shall promulgate regulations on securities trading containing the following contents: trading method; trading time; methods for determining reference price; securities price fluctuation limit; market-wide circuit breaker (if any); types of trading orders; change or cancellation of trading orders; confirmation or rejection of securities trading; trading suspension; partial or full suspension of a ticker symbol from trading; publishing of trading results and other relevant contents.

As regulated above, every SE shall organize securities trading by adopting the centralized order matching method and put-through trading method according to the following principles:

- The centralized order matching method executed on the trading system must ensure the principle of prioritizing price and time;

- The put-through trading method executed on the trading system must comply with the principle that the trading parties negotiate on the trading contents themselves.

What are principles of opening securities trading accounts at the securities companies in vietnam?

Pursuant to Clause 6 Article 6 of the Circular 120/2020/TT-BTC, each securities company is allowed to open securities trading accounts according to the following principles:

- The securities company that engages in proprietary trading and is a member of the VSE is allowed to open only 01 proprietary trading account right at such securities company and is not allowed to open any securities trading account at other securities companies, except for the case in Point d of this Clause.

- If the securities company cancels its membership of the VSE, it may use a securities trading account at another securities company that is a member of the VSE to handle the remaining securities on proprietary trading account.

- The securities company is allowed to open 01 market-making account for the listed and registered securities and 01 secured warrant hedging account at such company to carry out transactions for these operations.

The securities company that is not a member establishing the exchange-traded fund (ETF) is allowed to open a securities trading account at the member establishing the exchange-traded fund, This account is used to exchange ETF certificates on the primary market and sell ETF certificates on the secondary market with respect to component securities and ETF certificates obtained from the exchange and purchase of component securities and ETF certificates on the secondary market to carry out exchange transactions, and not used to carry out other securities transactions.

- Other securities trading accounts prescribed by law.

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