Vietnam’s derivatives market officially runs
Deputy Prime Minister Vuong Dinh Hue (Source: VNA)
A ceremony was held by the Ministry of Finance and the State
Securities Commission in Hanoi on August 10 to launch the derivatives market,
which is expected to limit risks and diversify investment products, thereby
increasing the securities market’s attractiveness.
the event, Deputy Prime Minister Vuong Dinh Hue asked the operators of the
derivatives market to run the market in a smooth, stable, transparent and safe
asked the Finance Ministry to continue working closely with other ministries,
agencies concerned and localities to refine relevant mechanisms in line with international
The derivatives market will help increase the liquidity and scale of the stock
market and support it to grow stably and be a safe, long-term capital
mobilization channel to service the country’s economic growth, he said.
to Hue, the stock and bond markets currently account for 57 percent and 24 percent
of the gross domestic product (GDP), respectively. The capital raised via the securities
market make up roughly 23 percent of the total social investment.
of the State Securities Commission (SSC) Tran Van Dung said the SSC will
continue directing the Hanoi Stock Exchange and the Vietnam Securities
Depository to study more products to put them up on the market, adding that the
VN30-Index futures contract will be the first product in derivatives market.
the near future, HNX30-Index and government bond future contracts are also
most important factor for the derivatives market is margin lending. In the
derivatives market, an investor must make the deposit in cash or shares at the
Vietnam Securities Depository and at market trade members (securities
companies) before a transaction takes place.
current collateral requirements in the derivatives market are 80 percent in
cash and 20 percent in shares, but at the initial stage to ensure the highest
safety, the margin ratio is set at 100 percent in cash.
derivatives market will open at 8.45am, 15 minutes earlier than the opening
hour of the stock market and close at 3pm. Prices of products are allowed to
fluctuate by /- 7 perent and price quotation is 0.1 VN30 index point.
unit is one contract. Contract unit is valued at 100,000 VND per VN30 index
point. The last trading day is the third Thursday in the month of maturity. The
month of maturity is the current month, the next month and the last two months
of the next two quarters.
to securities firms, some 2,000 derivative accounts have been activated so