Main bourse to launch new transaction system next week

The new system can handle 3-5 million orders a day, three times the old one; and is designed to prevent partial overloads.

Tech giant FPT had begun to work on the new system early March, editing stock trading software, re-establishing communications systems with securities companies, and integrating more software from relevant agencies, including the SSC and the Vietnam Securities Depository.

Late last month, the SSC and HoSE issued public apologies over the main bourse’s repeated overloads, which had made it impossible for many investors to place orders or see the correct data so as to make proper investment decisions.

The overloads on HoSE over the past 6 months were partly caused by the stock market’s rapid expansion, according to a SSC leader.

The Ho Chi Minh Stock Exchange began, late June, testing a new system from South Korea which it plans to use from later this year.

Le Hai Tra, CEO of the exchange, the temporary system from FPT would serve as a backup.

HoSE’s 20-year-old system has been overloaded in recent weeks due to a huge influx of new retail investors, slowed down to a crawl and required trading to be halted on June 1 that brokerages had told clients not to cancel or modify their orders.

Last year, HoSE gained the biggest year-on-year surge of 46 percent in pre-tax profits to VND691 billion ($30 million) during its 20-year history, and an increase of 39 percent in revenues to a record high of nearly VND993 billion. Transaction fees, which HoSE collects at 0.027 percent, accounted for 89 percent of the revenue.