On the morning of June 24, in Hanoi, the Securities Journalists Club held an online discussion with the topic “Order Blocking at HOSE: Situation and Solutions”.
According to Mr. Le Hai Tra, the cause of the congestion is also compared to the design road used for 900,000 vehicles in traffic, but the number of vehicles exceeds the number, leading to congestion in the past time. .
However, the difference between the stock trading system for the road is: Vehicles on the road are large and small cars, but orders to buy 100 or 10,000 shares are also counted as a trading order. . Cancellation/modification of an order is also counted as a trading order. And it all counts towards 900,000 orders.
Thus, an order to buy 100 shares at 10,000 VND compared to buying 10,000 shares at 100,000 VND, the story is completely different. So, the same number of orders in the market but the transaction value can make the number completely different.
Order congestion in the stock market has caused a lot of damage as well as frustration for investors. It was Mr. Le Hai Tra, General Director of HOSE who voiced his desire to “receive the sympathy and calmness of businesses and investors in the market”. Many promises have also been made, that the congestion will end this July. Of course, investors can only wait, but what is interesting to trade on the stock market is not by day, by month, but by seconds and minutes. The question arises, who will be responsible for these losses when trading investors pay all fees but receive inadequate service quality? Not to mention whether or not there is a situation of profiteering in the market. Blocking orders, not allowing to cancel orders, edit orders?
Mr. Duong Dung Trieu, Chairman of FPT Information System Joint Stock Company (FPT IS) said that when the application is put into operation like HOSE, it is carefully checked, related to security, the system is designed so that This hard drive fails to run… no profit when the transaction is congested.
In addition, Mr. Le Hai Tra also informed the efforts of HOSE and market members in the past time to aim at handling the number of orders participating in the overloaded trading system causing congestion. The first step is to increase the stock trading lot from 10 to 100. This reduces the number of shares by about 18%, so the transaction value is increased during that time. However, that did not last long because the number of new accounts continued to increase, the number of orders of investors continued to increase.
The next step that HOSE targets and proposes to increase the trading lot from 100 to 1,000 will reduce the number of orders involved by about 15%. Another suggestion that has been made is to limit the cancellation/modification of orders. Currently, the number of orders to cancel/modify orders a day accounts for 1/3 of the number of trading orders. Out of 900,000 orders participating in trading a day, there are up to 1/3 (about 300,000 transactions) just to cancel / correct the number of orders placed previously. The actual number of matched orders is about 600,000 orders. Therefore, when there is limited control on order correction/cancellation, the number of matched orders increases.
Mr. Tran Van Dung, Chairman of the State Securities Commission, shared that efforts to improve HOSE techniques to improve order processing and liquidity are a national emergency. In the past time, the growth of the stock market is very high, if before, a trading session was worth only about 10,000 billion VND, now, sometimes, the transaction is up to nearly 30,000 billion VND/session. Or in the derivatives market, sometimes up to 50,000 contracts, many times higher than expected, causing network congestion.
In the most recent press interview on June 11, Finance Minister Ho Duc Phuc said that the ministry is directing the State Securities Commission to quickly fix technical errors and best serve investors.
The Ministry of Finance and the State Securities Commission are actively implementing two solutions at the same time. The first is to work with FPT to improve and fix the technical system with HOSE, which is expected to overcome the order congestion in early July.