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HNX tests new board for HoSE's stocks

Update: March, 10/2021 - 08:36
Two traders looks at stock prices in front of a big screen. HNX carried out measures to solve congestion on HoSE. VNA photo

HÀ NỘI — The Hà Nội Stock Exchange (HNX) is testing a new power board on its system to address the frequent overload issues on the Hồ Chí Minh Stock Exchange (HoSE).

HNX just informed its member securities firms about the trial of creating a new power board for HoSE’s stocks.

This is one of many solutions considered by government agencies to solve overload problems that have occurred more often recently, affecting investors’ sentiment.

The new power board will follow all of HoSE regulations including session structure, amplitude, order type, price step, or trading lot. The connection, placing order, receiving results and payment will be navigated from securities firms to HNX system.

HNX also drafted specification documents on processes and technology to send to member securities companies to cooperate in researching and testing. If any securities firm has finished modifying the system, it can register to test the transaction connection with the HNX.

The move came a week after HNX collected opinions from securities firms regarding time for upgrading software systems.

On March 3, the State Securities Commission (SSC) of Việt Nam sent documents to HoSE, HNX and Việt Nam Securities Depository (VSD) on the transfer of listed shares from HoSE to HNX. SSC requested HNX to promptly receive and process listed companies on HoSE, without reviewing their records under the new listing process.

The transaction structure, transaction supervision, listing management, reporting and information disclosure regulations of transfer stocks will be the same as those listed on the HNX. HOSE and HNX coordinate in supervising transactions for these stocks to ensure continuity in supervision.

Other solutions such as rising minimum trading lots to 1,000 units are being considered. HoSE is also consulting with market participants and investors on not allowing adjusting or cancelling orders to find the best solution for the congestion on the southern exchange.

Last week, the VN-Index rose slightly 0.02 per cent. The index failed to test the psychological resistance level of 1,200 points again as selling pressure persisted and the frequent overload of orders during trading hours on HoSE affected transactions, making investors' sentiment turn negative. — VNS

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