Vietnam Insider – The Ho Chi Minh Stock Exchange (HoSE) has announced that the long-anticipated Korea Exchange (KRX) trading system will officially go live on May 5, 2025. This marks a transformative step in modernizing Vietnam’s capital market infrastructure and aligning with international standards—a key prerequisite for the country’s upgrade from a frontier market to an emerging market.
The KRX system, developed in partnership with the Korea Exchange (KRX) since 2012, is a next-generation IT platform designed to manage and operate stock market transactions. Originally planned for rollout in 2021, the system’s implementation was delayed but has since been thoroughly tested, generating strong interest from institutional investors and boosting stock prices in the securities sector.
The launch of the KRX system lays the groundwork for introducing several long-awaited innovations to Vietnam’s stock market: T+0 intra-day trading (same-day settlement); Short selling, Derivatives such as options contracts; Shorter clearing and settlement cycles; Central Counterparty Clearing (CCP)
These upgrades are expected to improve transparency, liquidity, and efficiency, enhancing investor confidence—especially from abroad.
“The implementation of KRX is not just a technical upgrade, but a foundational shift that could accelerate Vietnam’s path toward emerging market reclassification,” commented an analyst at a leading investment fund in Ho Chi Minh City.
Once operational, the KRX system will introduce several key changes to trading operations: New order types (ATO/ATC during periodic auctions)
Revised rules for order modification and cancellation; More detailed support for negotiated (block) trades; Updated rules for foreign investors, odd-lot transactions, and restricted securities; Display of the top three bid and ask price levels during auctions
Vietnam’s upgrade from frontier to emerging market status by global indices like MSCI or FTSE Russell depends heavily on clearing bottlenecks such as post-trade infrastructure and regulatory transparency. The KRX system directly addresses these issues by: Enabling central counterparty clearing; Improving market surveillance and Enhancing IT resilience and scalability
HoSE has urged all brokerage firms, custodians, and market participants to allocate sufficient resources for the KRX system rollout and to educate investors about its new features. The goal is to ensure smooth, safe, and uninterrupted trading operations from the launch date onward.
As Vietnam sharpens its competitive edge in Southeast Asia’s capital markets, the KRX system is expected to be a game-changer—paving the way for deeper foreign participation, diversified financial products, and greater integration with the global financial ecosystem.
For updates on Vietnam’s financial reforms and market developments, stay tuned to Vietnam Insider.
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Source: Vietnam Insider