Hanoi (VNA) - Vietnam’s derivatives market will start operating in May orJune in hopes it will improve Vietnam’s securities market and attract moreforeign investment, according to the Chairman of the State SecuritiesCommission, Vu Bang.
Bangsaid at a recent meeting in Hanoi that the legal framework for thederivatives market has been completed. For example, the finance ministryloosened the regulation on investors’ margin deposit accounts, and an amendedcircular on the matter could be issued this month.
Headded that the Hanoi Stock Exchange (HNX) and the Vietnam Securities Depository(VSD) have completed developing regulations on the listing, trading, settlementand membership, and those regulations could also go into effect this month.
Thetrading and settlement systems have been tested and they are now stable andready for market operation, Bang said, adding that there are 16 brokeragecompanies ready for the derivatives market, but only half of them are licensedto participate in the market.
Coveredwarrants are another product expected to become available in September 2017,allowing holders to buy or sell a specific amount of equities, currency orother financial instruments, usually from or to a bank or a similar financialinstitution, at a specific price and time.
Thelegal framework for this product has been developed, Bang said. HNX and VSD aredeveloping instructions and criteria to monitor the trading system and theestablishment of the covered warrant market.
Accordingto the SSC, at the end of February 2017, 708 companies and fund certificateswere listed on the two local exchanges, and 485 stocks were traded on theUnlisted Public Company Market (UPCoM) with total listing value of nearly 778trillion VND (34.57 billion USD), an increase of 7 percent from the end of2016.
Thesecurities market’s capitalisation reached more than 2.26 trillion VND (50.3 percentof Vietnam’s gross domestic product) – the highest since 2000 and an increaseof 16 percent from 2016’s year-end figure.
Markettrading liquidity also improved, with a daily average trading value of 7.36trillion VND, an increase of 6.6 percent from last year’s average.
Sincethe beginning of 2017, foreign investors have recorded net buy values of 1.54trillion VND in stocks and 5.96 trillion VND in bonds despite the fact thatinternational investors have moved out of emerging markets like Vietnam onexpectations that the US Fed will raise its lending rates. The value of foreigninvestment portfolios in the first two months reached a record 18.4 billion USD.-VNA
Bangsaid at a recent meeting in Hanoi that the legal framework for thederivatives market has been completed. For example, the finance ministryloosened the regulation on investors’ margin deposit accounts, and an amendedcircular on the matter could be issued this month.
Headded that the Hanoi Stock Exchange (HNX) and the Vietnam Securities Depository(VSD) have completed developing regulations on the listing, trading, settlementand membership, and those regulations could also go into effect this month.
Thetrading and settlement systems have been tested and they are now stable andready for market operation, Bang said, adding that there are 16 brokeragecompanies ready for the derivatives market, but only half of them are licensedto participate in the market.
Coveredwarrants are another product expected to become available in September 2017,allowing holders to buy or sell a specific amount of equities, currency orother financial instruments, usually from or to a bank or a similar financialinstitution, at a specific price and time.
Thelegal framework for this product has been developed, Bang said. HNX and VSD aredeveloping instructions and criteria to monitor the trading system and theestablishment of the covered warrant market.
Accordingto the SSC, at the end of February 2017, 708 companies and fund certificateswere listed on the two local exchanges, and 485 stocks were traded on theUnlisted Public Company Market (UPCoM) with total listing value of nearly 778trillion VND (34.57 billion USD), an increase of 7 percent from the end of2016.
Thesecurities market’s capitalisation reached more than 2.26 trillion VND (50.3 percentof Vietnam’s gross domestic product) – the highest since 2000 and an increaseof 16 percent from 2016’s year-end figure.
Markettrading liquidity also improved, with a daily average trading value of 7.36trillion VND, an increase of 6.6 percent from last year’s average.
Sincethe beginning of 2017, foreign investors have recorded net buy values of 1.54trillion VND in stocks and 5.96 trillion VND in bonds despite the fact thatinternational investors have moved out of emerging markets like Vietnam onexpectations that the US Fed will raise its lending rates. The value of foreigninvestment portfolios in the first two months reached a record 18.4 billion USD.-VNA
VNA
