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Vietnam to launch derivatives market

Lan Nhi
Thursday,  Aug 10,2017,00:07 (GMT+7)
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Vietnam to launch derivatives market

Lan Nhi

HANOI – Vietnam’s derivatives market will make debut Thursday with the first derivatives product being the futures contract for the VN30 Index, a sub-index on the HCMC stock exchange that gauges the performance of the 30 largest companies by market capitalization.

According to the Hanoi Stock Exchange, the legal framework for the derivatives market is in place. However, criteria for market supervision and financial mechanism have not been approved.

Speaking at a press conference on August 8, Pham Hong Son, vice chairman of the State Securities Commission, said decrees and circulars governing derivatives market operations are ready, including an accounting mechanism for securities firms and regulations for the Hanoi stock exchange and the Vietnam Securities Depository (VSD).

According to a representative from VSD, investors have opened 1,300 accounts to join the market.

In the first stage, administering agencies expect to draw on experience from the derivatives market, instead of seeking to expand the size of the market. However, due to a high ratio of leverage and risks, officials from the Hanoi bourse are still waiting for approval from the State Securities Commission for supervision rules.

The supervision criteria are basically similar to those for the stock market; they are mainly for prevention of manipulation. The commission is also seeking approval from the Ministry of Finance for tax calculation rules.

Securities firms will collect transaction fees as the current regulations permit. In the first six months, investors will enjoy fee exemptions.

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