Hanoi, Vietnam – Hanoi Stock Exchange (HNX) today announced the official launch of the derivatives market (MIC Code: XHNF), the first of its kind in Vietnam.
“Following the completion of legal framework for the derivatives market, Vietnam’s Ministry of Finance (MoF) has directed State Securities Commission (SSC), HNX and Vietnam Securities Depository (VSD) to develop market infrastructure, products, and equip market intermediaries and investor community with necessary information and preparations,” spoke Mr. Tran Van Dzung, SSC Chairman. HNX operates trading system and VSD implements clearing and settlement, while Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) takes on the role as settlement bank for the derivatives market.
The derivatives market opens 15 minutes earlier than and close at the same time with the current stock market, effective August 10, 2017. In terms of product, three futures contracts with the most liquid underlying assets in Vietnam including VN30 Index, HNX30 Index and 5-year Government Bond have been approved to be traded. Among them, VN30 Index Futures Contract is the first to be launched. The delivery months of the futures contract are the spot month, the next calendar month and the next two quarterly months.
The derivatives trading, clearing and settlement system was developed in collaboration with Global Markets Exchange Group (UK) and FPT Vietnam, ensuring synchronized technology and real-time connection. The market also engages first 7 member brokers - HCM City Securities, Saigon Securities, VietCapital Securities, BIDV Securities, VNDIRECT, MB Securities and VPBank Securities - to facilitate trading of derivatives products in Vietnam.
“The establishment of the derivatives market in 2017 marked a milestone in the development of Vietnam’s securities market. The derivatives market plays an indispensable role of the third pillar in a modern market structure, supporting the sustainable growth of cash markets and altogether contributing to shape a safe and sound channel of capital for the economy, providing domestic and foreign investors with effective investment opportunities,” said H.E. Deputy Prime Minister Vuong Dinh Hue as the guest of honor at the launching ceremony today in Hanoi. Minister of Finance Dinh Tien Dung pledged to continue rigorous efforts to coordinate relevant regulators and agencies to complete legal framework, enhancing risk management and supervision on the derivatives market to attain international standards and boost competitiveness, which, in its turn, will support public finance restructuring process and Vietnam’s banking and financial system.
About Hanoi Stock Exchange
The Hanoi Stock Exchange (HNX) was established pursuant to Decision No.01/2009/QĐ-TTg by the Prime Minister on the basis of transforming and restructuring the Hanoi Securities Trading Center which was established by Decision No. 127/1998/QĐ-TTg and launched on 08/03/2005. On 24/06/2009, HNX was inaugurated as a State-owned single - member limited liability company with the Ministry of Finance as a representative.
As an organizer and regulator of the securities market, HNX has organized share auctions, Government Bond biddings to mobilize capital for the State budget. HNX has also operated three secondary trading markets on a modern tech platform, including listed stock market, Government Bond market, and UPCoM (Unlisted Public Company Market).
ultimate goal for HNX is to operate a transparent, equitable and efficient
market, develop new products, attract domestic and foreign investments, and
prove itself as an important capital mobilizing channel of the economy,
ensuring the interest of investors and market participants.
For more information see www.hnx.vn