Securities Commission requires securities companies to immediately stop placing automatic orders

09/10/2023 12:51 Nhat Linh Print article

ANTD.VN - The State Securities Commission requires securities companies to review and immediately stop using automatic order placement because this activity has many potential risks and affects the stability of the stock market.

The State Securities Commission (SSC) has just sent a document to securities companies regarding the use of algorithms, robots and high-frequency orders in placing online securities trading orders.

Accordingly, the State Securities Commission requires securities companies to review and immediately stop using automatic order placement; at the same time, take technical measures to prevent automatic order placement and require investors to stop using the above form without permission from the management agency.

Nhiều công ty chứng khoán đã sử dụng công nghệ robot để đặt lệnh giao dịch chứng khoán ảnh 1

Many securities companies have used robot technology to place stock trading orders.

According to the State Securities Commission, through the management and supervision of online securities trading services, the agency has noticed the use of robot technology to place automatic online securities trading orders with high frequency. This activity has many potential risks and affects the stability of the stock market.

Specifically, automatic order placement causes a sudden increase in orders from securities companies to the Stock Exchange at the same time, leading to the number of orders entering the floor exceeding the design capacity of the entire system, causing system overload.

At the same time, this activity also poses the risk of a chain breakdown when the stock market develops badly, thereby negatively affecting the risk management of securities companies.

Pursuant to the regulations on online securities transactions in Circular No. 13/2017 and Circular No. 73/2020 of the Ministry of Finance guiding electronic transactions on the securities market, the State Securities Commission said that the use of the above technologies to place orders is not yet permitted.

Therefore, the State Securities Commission requires securities companies to seriously implement and take full responsibility before the law for the above issues.

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