HANOI (Reuters) – Vietnam will delay the launch of a long-awaited new stock trading system originally scheduled for next week, the State Securities Commission (SSC) said.
The debut, scheduled for May 2, was delayed due to regulatory hurdles and a reluctance to connect to the new system to provide trading services to investors from securities companies, the State Securities Commission (SSC) said in a document dated April 25.
According to the document, Vietnam’s main exchange in Ho Chi Minh City also did not report the launch plan to the Ministry of Finance and did not obtain the necessary information security permits, without specifying a new launch date.
A new trading system provided by the Korea Exchange (KRX) will speed up the settlement of trades as part of reforms aimed at modernizing the country’s stock market.
KRX will process transactions throughout the day, speeding up transactions and facilitating trading, especially short selling, which has been hampered by the current slower system.
If successful, the increase would improve the chances of the Southeast Asian country being reclassified as an emerging market.
Both MSCI and indices currently classify Vietnam as a frontier market, preventing many funds, family offices and others from investing in companies listed there.