Does the KRX system protect retail stock investors?

(NLDO)- The KRX system processes orders quickly, in large volumes, smoothly... providing transparent and safe market control tools.

Ho Chi Minh City Stock Exchange (HoSE) has just officially announced that on May 5, it will put into operation a new information technology system (KRX System) for the Vietnamese stock market.

HoSE recommends that market members focus on allocating sufficient resources to put the KRX System into operation as planned; strengthen supervision, dissemination, and propaganda to investors about new features; ensure a safe, continuous, and stable trading market.

On the afternoon of May 24, SSI Securities Company (SSI Securities) had a session to share information and new points about KRX with investors.

On May 5, the KRX system officially went into operation.

Ms. Le Thi Thanh Tam, Director of Digital Product Development of SSI Securities, believes that KRX will be a system that helps speed up order processing, ensuring smooth and seamless matching of large volumes of orders. KRX provides HOSE and the Vietnam Securities Depository (VDSC) with tools to control securities companies smoothly, ensuring safe market operations; is a tool to control transactions on the market continuously, increasing transparency, and is an important basis, platform, and tool for deploying many new products in the future.

In addition, KRX has significant changes. Specifically, on the new KRX system, the price board does not display the ATO/ATC price, instead, ATO/ATC orders will be displayed at a specific price as a limit order for the remaining ATO/ATC order volume.

Previously, ATO-ATC could not modify orders but KRX could modify volume or price but not simultaneously. That is, modify order 1.

For odd lot trading, KRX allows odd lot orders to be placed throughout the day, not just at the end of the session as before.

With restricted trading stocks, there is also a new point that on HOSE, they can be traded all day, instead of only trading in the afternoon as before.

There is also a significant change in the foreign room, which is that whenever a foreign investor's order is pushed into the system, the room will be immediately updated for both regular orders and negotiated transaction orders.

Many investors ask whether KRX supports or benefits small and retail investors. Ms. Le Thi Thanh Tam said that the KRX system trades with a larger load, more smoothly, more transparently, so price manipulation will be difficult to happen, because there is comprehensive integration, the management agency can control the market well, transparency so it can be said that small and retail investors will be more secure, that is also a positive thing, supporting small and retail investors.

Source: https://nld.com.vn/he-thong-krx-co-bao-ve-nha-dau-tu-chung-khoan-nho-le-196250424183848995.htm