HA NOI (VNS)— The State Securities Commission asked the Government to extend the deadline for a draft decree on the derivatives market from the end of this year to next year.
Although Viet Nam urgently needs derivatives regulations, the complicated topic requires careful consideration and consultation with people from relevant organisations, the commission said.
While the country's stock market has been operating for more than 13 years, there is not yet a derivatives market. Such a market is expected to be introduced in 2015.
Derivatives include four main instruments: forward contracts, swap agreements, futures contracts and option contracts. Currently, only stocks, bonds and fund certificates are traded in Viet Nam.
According to chairman of the State Securities Commission Vu Bang as quoted by Dau Tu Chung Khoan, the derivatives market would operate under the management of the Viet Nam Stock Exchange merged from the two existing bourses.
The commission proposed that only securities companies with minimum equity of VND500 billion (US$23.8 million) and good financial status be allowed to join the derivatives market.
Well-trained human resources, a consistent and transparent legal framework and risk control management are critical for the derivatives market's success, experts said. — VNS