Stock exchange considers halt to cancelation, modification of orders
Stock exchange considers halt to cancelation, modification of orders
The HCM Stock Exchange is considering taking away the option of canceling and modifying orders as it seeks to ease the overload on its outdated system.
An investor looks at stock prices on the screens at a brokerage in Ho Chi Minh City. Photo by VnExpress/Quynh Tran.
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Cancelations and modifications accounted for over 33 percent of orders last month, according to data from the exchange.
But investors are unhappy with the proposal for obvious reasons.
Another solution the exchange is considering to deal with its chronic overload is increasing the minimum price increment to "reduce the number of transactions."
But to do this, it needs to bring over experts from Thailand to modify the system source code, which was written by them, a difficult task since no one wants to be quarantined for two weeks in Vietnam and another two weeks in Thailand on return.
Le Hai Tra, CEO of HoSE, said a new trading system would be tested over the next four months or so.
The exchange has also received approval from the State Securities Commission of Vietnam to move some of its stocks to the Hanoi Stock Exchange (HNX), home to small and mid-cap companies.
But no company has yet volunteered to make the switch.
