On August 10, 2017, Vietnam’s first derivatives market went live in partnership with GMEX Group at the Hanoi Stock Exchange - aiming to boost investment in Vietnam's capital markets.
The launch announcement was made at an event in Hanoi in the presence of Deputy Prime Minister Vuong Dinh Hue, members of Cabinet and authorities from related agents including Minister of Finance, Deputy Governor of State Bank of Vietnam, Major of Hanoi city People Committee, Chairman of State Securities Commission. The Ministry of Finance has entrusted Hanoi Stock Exchange and Vietnam Securities Depository (VSD) to operate the derivatives market’s transaction and settlement activities.
The first derivatives products on the new market will be futures contracts for the VN30 Index, which tracks the performance of the 30 largest companies by market capitalization on the Ho Chi Minh City Stock Exchange. Government bond futures and other products will likely be added to the lineup soon. Brokerages from Japan and South Korea have shown an interest in the market's products.
Vietnam’s derivatives market 1st day trading
The new derivatives market will make it attractive for institutional investors to enter the Vietnamese market by providing hedging facilities for risk management; the ability to leverage, extend their investment period and keep market volatility low. It will also help investors predict the future movement of securities and turn profits on their invested assets. This aligns with the government's objectives to encourage foreign investment, create a capital markets environment to support this and ultimately move Vietnam from MSCI frontier market status to MSCI emerging markets status.
According to Vietnam's securities market authorities, now is the right time to launch derivatives as the country's 17-year-old stock market is stable. Currently, six securities companies -- HCM City Securities, Saigon Securities, VietCapital Securities, BIDV Securities, VNDIRECT and VPBank Securities -- had been approved as authorized traders on the market as of June 2017.
VA