Stock market boom and the need to ensure technology infrastructure

Speakers attending the seminar "Ensuring technology infrastructure during the stock market boom" organized by the Finance - Investment Newspaper

Technological infrastructure like highways

The Vietnamese stock market has recently recorded strong growth, reflected in impressive figures on liquidity and index growth. Large order matching sessions have also become popular, bringing the Vietnamese stock market to the highest liquidity in Southeast Asia.

If previously, the liquidity of 40,000 billion VND/session was considered a record, now, trading sessions with a total value of over 70,000 billion VND, or even higher, have become more familiar to Vietnamese stock investors. The positive signal is that during this period, the "order congestion" situation is no longer an obstacle for the market as it was during the F0 boom in 2021.

Participating in the Seminar “Ensuring technological infrastructure during the stock market boom”, part of the program series “Innovation - Leverage for the new era” organized by the Finance - Investment Newspaper, Ms. Vu Yen Dung, Director of the Securities Operations Department (VPS Securities Company) shared that in recent years, the Company has focused on expanding infrastructure technology and enhancing the experience of providing diverse investment services to investors in the market.

With a large market share and a mass customer base that prefers continuous trading, VPS has determined that serving investors with smooth, safe, and stable trading and investment activities is a consistent strategy. Ms. Dung said that during the recent stock market boom, the VPS system at times recorded 500,000 - 700,000 customers, with orders reaching 700,000 - 800,000 orders/session, the highest in recent years.

“With a proactive and flexible development platform system, we are confident that in the coming time, especially in the context of market upgrading and the explosive development of the Vietnamese stock market, VPS can meet the expansion of customer scale, expand the scale of products, services and infrastructure to meet market liquidity many times more in the future,” Ms. Dung affirmed.

The operation of the KRX system (information technology system for managing and operating transactions on the Vietnamese stock market) is considered an important catalyst for trading sessions with strong explosive liquidity. In fact, in recent times, the number of orders and participating investors has been very large, but the system has still operated continuously and met the needs of investors.

Mr. Ngo Quang Huy, Deputy General Director of Financial Software Solutions Company (FSS) - one of the units directly participating in the KRX Project - emphasized that the Project is a historical milestone of the Vietnamese stock market. This is a difficult project, with a large scope, covering all components of the market.

According to Mr. Huy, the new technology system with strong processing capacity is like a large highway. For securities companies and technology infrastructure solution providers, KRX is not simply a system to increase processing capacity, completely solve the problem of order congestion, but also a platform to deploy some more complex products, expected to be put into trading in the near future, such as intraday trading products, options products, short selling, etc.

Ready for the smart stock market

Currently, in the Vietnamese stock market, the number of transactions made by individual investors accounts for the majority, up to 90%, mainly via the Internet and mobile. This is also a problem for securities companies and technology solution providers.

The stock market in the next 5 - 10 years will be a smart market.

- Mr. Ngo Quang Huy, Deputy General Director of Financial Software Solutions Company (FSS)

The stock market in the next 5-10 years will be a smart market, all investment decisions, risk management, and analysis are based on artificial intelligence (AI) technology and big data, investors can trade seamlessly on the same multi-asset platform, including stocks, bonds, fund certificates and later cryptocurrencies.

Experts from FSS said that to be better prepared in terms of technology, market members must always be in a state of readiness.

FSS is providing core solutions to more than 35 securities companies and 10 fund management companies, the recent explosive trading sessions in the market are a predicted test. FSS and securities companies have invested strategically for a long time to build technology infrastructure, including software and hardware solutions to meet large trading volumes, even meeting levels of 3 times, 5 times higher than the present.

According to Mr. Ngo Quang Huy, the development of the technology system in this period as well as in the coming time poses two challenges. That is to create a system that can serve the increasing transaction volume, especially when new products are expected to be put into trading, and at the same time, to improve the quality of service for users to be convenient, with smooth and fast processing speed, from placing orders to operations on monitoring and risk management.

At the seminar "Ensuring technology infrastructure during the stock market boom", from the perspective of a technology solution provider, FSS representative made some recommendations for market members in the process of promoting digital transformation, preparing for the market upgrading stage.

First, information security is the core and most important issue. No matter how powerful the system is, if the information security in the transaction system is not guaranteed, it will be a failure.

Second, market participants should gradually move to open architecture systems (such as API systems) to increase integration capabilities and expand external connections.

Additionally, companies also need to invest in data to deliver the best, most personalized experience to investors.

Source: https://baodautu.vn/chung-khoan-bung-no-va-yeu-cau-dam-bao-ha-tang-cong-nghe-d371913.html