After the Vietnam Securities Depository said the settlement period could be shortened to T+3 if brokerages settle payments prior to 4 pm of the T+2 date, several securities companies confirmed their ability to deploy.
HA NOI —
"I think many other brokerages will be capable of implementing," said Bao Viet Securities CEO Nhu Dinh Hoa.
It was a long-standing expectation of the whole market, he added.
Reducing the period would help brokerages minimise the risks of investment, as they could flexibly react to the fast-changing market, Hoa said.
The depository centre's plan, according to the CEO, was feasible, because there would be no additional technical problems.
Meanwhile, HCM City Securities CEO Trinh Hoai Giang said that market liquidity would improve by 20-30 per cent if T+3 payment was applied.
"In addition, securities firms will have more chances to increase earnings from fees, as well as develop risk management systems, particularly in margin trading," he noted.
However, he said it was just a short-term measure, while the domestic stock market still needed a long-term solution of the T+0 date to form the base of derivatives.
Before reaching the T+0 payment, Tan Viet Securities CEO Nguyen Van Dung proposed to sell securities on the T+1 date while payment remained as T+3.
"This method could help boost market rotation by eight times and enhance transactions in the afternoon session," he added.
During a meeting last week, the depository centre said it worried about the capacity of brokerages if the settlement period was shortened. However, the number of troubled firms was small, and watchdogs should not delay such a beneficial measure, Maritime Bank Securities Co responded. — VNS