Just 13 per cent ready for KRX system rollout
Just 13 per cent ready for KRX system rollout
Over 77 per cent of securities firms in Vietnam have successfully tested the Korean Exchange (KRX) system functions, yet a mere 13 per cent are assessed as being ready for the system's live deployment.
The Ho Chi Minh City Stock Exchange (HSX) convened a session with its member firms on October 10 to assess the preparedness for the forthcoming roll-out of the Korean Exchange's (KRX) IT system, a pivotal move in the nation's stock market infrastructure.
Recent testing results suggest a varied landscape of readiness. Out of 76 securities companies, 59 have successfully tested all the system's functions, representing a promising 77.6 per cent success rate. Among these, Pinetree was noted for fully completing all functional tests.
Conversely, 17 firms, including prominent names like MB Securities (at 85.71 per cent functionality), Viet First Securities (90 per cent), VPS Securities (95 per cent), VNDirect Securities (95.3 per cent), and SSI Securities (97.6 per cent) are yet to achieve full test success.
Seven members, including ACB Securities, VIX Securities (with the lowest readiness score at 50 per cent), and SaigonBank Berjaya Securities, are languishing below the 80 per cent threshold.
The Vietnam Securities Depository and its members have collaboratively executed their entire scripted testing sequence concerning stock payment offset systems and security registrations.
However, a lingering concern is the current low go-live readiness rating for the KRX system among market members. Only 10 members, or 13.2 per cent, are adjudged to be fully ready, while a staggering 86.8 per cent are yet to reach that point.
Deputy chairwoman of the HSX, Nguyen Thi Viet Ha stressed, "The Ministry of Finance is resolved to operationalise the KRX system by year-end. Securities companies that are unprepared for this transition will face consequences. The onus is on them. If they are not ready, HSX will proceed regardless. Any fallout will squarely be the securities firms' responsibility."
Earlier in August, only 32.8 per cent of the 76 securities firms had achieved a 100 per cent test success rate with the KRX system's functionality. This underscores the critical progress made in the intervening period but also highlights the road ahead.
By mid-September, the Vietnam Stock Exchange (VNX) had issued directives urging its member firms to rigorously complete the second round of KRX system testing. It was clarified that firms unable to connect with the KRX system would not meet VNX membership criteria, and as such, would risk losing their member status and would be fully liable to their clientele.
On the current timeline, Vietnam is planning for the final testing phase in November. The system is expected to be prepped to go-live on December 11, with formal operations commencing by year-end.
