Stock market 2021: The new IT system to support and create turning point changes

Mrs. Ta Thanh Binh, Director of Stock Market Development Department, State Securities Commission of Vietnam

The phenomenon of stock order blockage in the market is being resolved by related authorities. In the perspective of the State management authority, could you please tell us which solutions have been deployed by authorities?

The strong growth in terms of the scale and liquidity of the market is the main reason leading to the congestion at HCM City Stock Exchange (HoSE) from the second half of December 2020 to now. The main reason is the processing capacity of the trading system at the Ho Chi Minh City Stock Exchange is already at an overloaded level, especially when the number of trading orders entering the market is increasing and it will continue to increase.

Realising this is an issue that will obstruct the development of the market, heavily affecting the interests of investors, from the end of 2020 up to now, the leader of the Ministry of Finance, the State Securities Commission has directed the Stock Exchange, the Securities Depository Center as well as related units to find solutions to support and handle the problem as quickly as possible.

To thoroughly deal with this issue, we have a coordination project with the contractor as Korea Stock Exchange to build a new information technology system. However, for many reasons, this system has not been put into operation to replace the old system in a timely manner. It is expected that by the end of 2021, this system can officially operate and solve the congestion.

From now to the end of 2021, leaders of the Ministry of Finance, as well as related agencies, are working to find solutions, including administrative and technical solutions. For example, the Ho Chi Minh City Stock Exchange has been instructed to increase the trading lot from 10 to 100 shares/order, applicable from the start of 2021. The State Securities Commission has also announced support for listed companies that intend to temporarily transfer transactions from Ho Chi Minh City Stock Exchange to the Hanoi Stock Exchange. The units will support in the fastest way to handle this process, ensuring businesses can continue to be carried out smoothly. In addition, we also consider several other technical solutions that are supported by other private entities, such as FPT, to come up with technical options that can solve this problem as soon as possible.

Besides the advantages we mentioned, what are the challenges and difficulties the market will face in 2021 and what needs to be removed to promote the market to develop stronger?

From the perspective of the management authority, we still maintain the view of continuing to implement policies to develop the stock market towards sustainability. Besides simultaneously implementing all the guiding documents of the Law on Securities in 2021, we are building the Stock Market Development Strategy to 2030 with very clear directions for market development in terms of scale and quality towards sustainable development.

Market restructuring will also be deployed at full levels in this year. Along with that is the story of restructuring goods to support market development in accordance with international practices. We expect the new information technology system will support and create turning point changes to the face of the stock market.