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Five firms get permits to trade in derivatives market

Update: May, 25/2017 - 10:29
Five brokerage firms have obtained permits from the State Securities Commission (SSC) to operate in the derivatives market. — Photo cafef.vn

HÀ NỘI — Five brokerage firms have obtained permits from the State Securities Commission (SSC) to operate in the derivatives market.

The companies are Sài Gòn Securities (SSI), VPBank Securities (VPBS), BIDV Securities (BSC), VNDirect Securities (VNDirect) and MB Securities (MBS).

The five brokerages can now trade in the derivatives market, including derivatives brokerage, proprietary trading and consultancy.

The brokerages must comply with SSC regulations, derivatives market regulations and other relevant policies and company charters.

According to Decree 86/2016/NĐ-CP and Decree 42/2015/NĐ-CP on requirements for a brokerage firm to trade in the derivatives market, a brokerage firm needs to have at least VNĐ600 billion (US$26.6 million) in its owner’s equity capital and chartered capital to perform proprietary trading.

Regulations also state that a brokerage firm needs at least VNĐ800 billion in chartered capital and owner’s equity capital to consult for derivatives trading.

Among the five brokerage companies, SSI has VNĐ4.9 trillion in owner’s equity capital, VNDirect has nearly VNĐ1.55 trillion, BSC has VNĐ902 billion, VPBS has VNĐ970 billion and MBS has VNĐ1.22 trillion.

Of the five brokerages, SSI, VNDirect, BSC and VPBS are also certified by the SSC to perform settlement and clearing activities for derivatives trading orders.

Other requirements for brokerage firms to operate in the derivatives market include not being in the process of merger, acquisition, dissolution or suspension by authorities.

The brokerage firm must have turned a profit for the last two years and the rate of available capital must be at least 220 per cent in the last 12 consecutive months before it submits its application.

The derivatives market is expected to come into operation in June 2017. The SSC last week made the Việt Nam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) the first financial institution to be eligible to carry out settlements for derivatives trading orders. — VNS

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