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The State Securities Commission has just sent a document to securities companies requesting them to immediately stop using the automatic order placement method.
Through monitoring the provision of online securities trading services at securities companies, the State Securities Commission found that there was a phenomenon of using robot technology to place automatic online securities trading orders with very high frequency.
This activity has many potential risks and affects the stability of the stock market. Specifically, it causes a sudden increase in orders from securities companies to the Stock Exchange at the same time, leading to the number of orders entering the floor exceeding the design capacity of the entire system, causing system overload.
Besides, it also causes the risk of chain breakdown when the stock market develops badly, thereby negatively affecting the risk management of securities companies.
Securities companies must immediately stop placing automatic orders.
Pursuant to the regulations on online securities transactions in Circular No. 134/2017/TT-BTC dated December 19, 2017 and Circular No. 73/2020/TT-BTC dated August 7, 2020 of the Minister of Finance guiding electronic transactions on the securities market, the use of these technologies to place orders is currently not allowed.
Therefore, the State Securities Commission requests securities companies to immediately review and stop the above automatic order placement (if any). At the same time, take technical measures to prevent automatic order placement and request investors to stop automatic order placement (if any) without permission from the management agency.
The State Securities Commission requires securities companies to seriously implement and take full legal responsibility for the above issues. Regarding the stock market developments, the Ministry of Finance said that as of August 31, 2023, the VN-Index reached 1,224.05 points, up 0.1% compared to the end of the previous month and up 21.5% compared to the end of 2022; the HNX-Index closed at 249.75 points, up 4.3% compared to the end of the previous month and up 21.6% compared to the end of 2022. The market capitalization of stocks on the three exchanges HOSE, HNX and UPCOM on August 31, 2023 reached VND 6,294 trillion, up 20.4% compared to the end of 2022, equivalent to 66.2% of estimated GDP in 2022.
The average transaction value in August 2023 reached VND 26,200 billion/session (more than USD 1.09 billion/session), an increase of 23.8% compared to the average of the previous month.
The average in the first 8 months of 2023 reached about 16,100 billion VND, down 20.1% compared to the average in 2022.
According to VTC News