Not enough basis to approve KRX system to operate on May 2

The State Securities Commission said: The fact that HOSE submitted to this agency a proposal to approve the official operation of the KRX system without reporting to the Ministry of Finance , the Vietnam Stock Exchange (VNX) and without opinions from the beneficiaries (Hanoi Stock Exchange (HNX) and VSDC) is not in compliance with legal regulations.

In addition, according to the content of Report No. 4 of HOSE, the KRX information technology system currently does not have a general acceptance record between the investor, contractor and beneficiaries (HNX, VSDC), which does not ensure compliance with Decree 73/2019 on management of investment in information technology applications using state budget funds.

HOSE's submission has not shown that the KRX information technology system has been approved by the competent authority for information security level (level 4) according to the provisions of Circular 12/2022 of the Ministry of Information and Communications .

Regarding members' preparation, the State Securities Commission said that there is currently no official document from members on their readiness to connect to the KRX information technology system as well as their ability to provide securities services to investors after connection.

Regarding the plan for the case of returning to the old system stated in Report No. 4 of HOSE, the State Securities Commission requested the exchanges and VSDC to ensure that the current trading, registration, depository, and clearing systems operate safely, stably, and smoothly in all situations.

Based on the above content, the State Securities Commission does not have sufficient basis to approve HOSE's proposal to put the KRX information technology system into official operation on May 2, 2024. The State Securities Commission requires the Exchanges and VSDC to be legally responsible for ensuring that the current trading, registration, custody, and clearing systems operate safely, stably, and smoothly in all situations.

KRX system is an information technology system for managing and operating transactions on the Vietnamese stock market, invested by HOSE and implemented by the Korea Stock Exchange (KRX). This project was signed and implemented since 2012.

In addition to HOSE as the investor, the beneficiaries of the KRX System also include the Hanoi Stock Exchange (HNX) and Vietnam Stock Exchange (VSD).

The KRX system aims to upgrade the system technology and infrastructure of the stock exchange in Vietnam. Due to many objective reasons such as the prolonged pandemic, the complexity of the large bid package, etc., the implementation of the KRX system has not taken place as previously planned.

At the gong-beating ceremony to open the stock exchange in the spring of Giap Thin 2024, Ms. Nguyen Thi Viet Ha - Acting Chairwoman of HOSE said that the KRX system will be deployed this year when market members ensure smooth and stable operation.

TH (according to Tin Tuc newspaper)

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