Pinetree CEO: Smooth KRX operations in the first week, achieving early stability thanks to proprietary core system

With a self-developed system highly compatible with the KRX architecture (designed by the Korea Exchange), Pinetree has significantly saved resources while improving testing efficiency and operational stability.

The new KRX trading system officially went live on the morning of May 5, marking a major transition for Vietnam’s stock market. Báo Đầu tư Điện tử (Electronic Investment Newspaper) conducted a quick interview with Mr. Lee Jun Hyuck, CEO of Pinetree Securities, to gather firsthand insights after the first week of trading and hear his perspective on the market’s outlook going forward.

The new IT system officially went live at the start of this week. After a full week of trading, how has the connection and operation process gone at Pinetree?

On the morning of May 5, the KRX system was officially launched, marking a major milestone for Vietnam’s stock market. At Pinetree, the process of connecting to the new IT systems of the Ho Chi Minh Stock Exchange (HOSE), the banking systems, and the Vietnam Securities Depository and Clearing Corporation (VSDC) went smoothly and in line with the plans we had set.

During the first trading week, all trading orders at Pinetree were executed seamlessly and stably, with no technical issues recorded. We will continue to listen to our customers and keep optimizing the system to deliver an even better experience for investors.

What preparations did Pinetree make to be ready for the KRX connection?

Right from the beginning of the year, Pinetree proactively developed plans and backup strategies for the implementation of the KRX system — one of the industry’s key technology projects. As soon as we received the official notification from the Exchange and VSDC, we immediately allocated personnel to coordinate testing and built transition scenarios to ensure a seamless integration process.

With the orientation of being a fully digital securities firm, from its establishment Pinetree has focused on technology investment and is proud to be one of the few companies in Vietnam to independently develop and fully own its securities core system. This in-house development is a major advantage, allowing Pinetree to be proactive and flexible in connecting to the new IT system without relying on third parties. Notably, Pinetree’s system has been designed to Korean standards since 2019, offering high compatibility with the architecture of KRX developed by the Korea Exchange. This has not only shortened timelines and saved resources but also improved testing efficiency and operational stability.

Besides being technologically prepared, what customer support activities has Pinetree implemented during the system transition phase?

We always put customers at the center of every decision. During the transition period, our top priority has been ensuring that customers adapt smoothly to the new system. Specifically, Pinetree implemented a transition plan from late April to early May, allowing customers to maintain 24/7 trading and deposit/withdrawal capabilities. Conditional orders that had not yet been triggered in the old system were preserved and continued to be processed after the switch to the new platform.

In addition, Pinetree rolled out a range of solutions such as timely communication via the website, fanpage, trading platform, and hotline; providing multi-channel customer support; offering guidance on using new features; and maintaining continuous technical monitoring to promptly handle any arising issues.

During this period, for the first time, we introduced a special offer of up to 30 days of margin interest-free for new margin customers and investors who had opened accounts at Pinetree but had no margin debt in the past six months. Pinetree also launched various margin packages that investors can choose and proactively register for, such as P-5.9% (5.9%/year margin interest for 90 days, daily limit of VND 100 million); and P-6.8% (6.8%/year margin interest for 30 days, daily limit of up to VND 5 billion), among others.

From the perspective of an investor who has traded on both the KRX system and systems in Vietnam, how do you assess the challenges during the transition? Will Vietnamese investors feel disoriented when approaching the new system?

In the initial phase, KRX has not yet rolled out all the new operations, and the changes have been clearly communicated by regulatory agencies and securities firms. This helps minimize confusion for investors. The new operations will be introduced gradually, giving investors time to learn and adapt. With the thorough preparation from both the regulators and securities firms, I believe investors will quickly familiarize themselves and effectively take advantage of the benefits that the KRX system offers.

How do you assess the outlook for the Vietnamese stock market now that the KRX system has officially gone live?

The KRX system has long been anticipated. However, at this point, investors might not notice many immediate changes, as expectations like T+0 settlement or short selling are still set for the future. That said, the new system brings significant improvements in order display, especially during the ATO and ATC sessions. Investors can now track indicative matching prices and the buy/sell surplus at the closest price level to place more informed orders, helping avoid “order masking” as seen in the past.

In the long term, KRX opens the door for the development of many new products, such as index options, derivatives, and other innovative financial instruments. Additionally, the new system enhances processing capacity, significantly reducing the risk of overloads like those seen in 2021. Importantly, KRX serves as a crucial condition for the market’s anticipated upgrade in October, which could pave the way for attracting stronger foreign capital inflows.