HÀ NỘI — Việt Nam may launch its first derivatives market in the first quarter of next year, officials said at a press briefing yesterday.
“The fundamental legal framework for trading derivatives has been completed, and stock exchanges will instruct investors and traders about the trading techniques,” Tạ Thanh Bình, head of Market Development Department at the State Securities Commission (SSC), said.
The fundemental documents to this shift are Decree 42/2015/NĐ-CP, issued in May 2015 by the then Prime Minister on derivatives and derivatives market, and the Circular 11/2016/TT-BTC issued early this year by the Ministry of Finance with guidelines for the implementation of decree.
The development progress of the derivatives market has basically gone according to plan, she said. The development of derivatives market was initially divided into three stages.
In the initial plan, legal framework and market facilitation had to be completed during 2013-15, and the market had to come into effect this year. After four years of implementation, relevant agencies would improve the quality of the market and launch other products as well.
Bình also urged the Hà Nội Stock Exchange (HNX) and the Vietnam Securities Depository (VSD) to develop the implementation plan and settlement mechanisms for the trading of derivatives products.
“The SSC will soon complete minor policies regarding the operation of derivatives market, and publishing of trading details and violations,” Bình said, adding that the SSC would work with the HNX and VSD to develop regulations on the prices, fees and taxation.
“Those papers will be completed soon and published before the market officially operates.”
Bình also suggested the HNX and the VSD should work together to test the technical system within this month in order to try it in October and November with market members, including securities firms and investment funds.
In addition, the SSC, the VSD and the HNX should improve the training for investors, traders and securities firms on related issues in derivatives trading, Bình added.
Big events coming in October
The HNX will also host three big events next month, including a CEO summit, which has drawn the participation of 10 local stock exchanges from all ASEAN countries, HNX Deputy Director General Nguyễn Thị Hoàng Lan said at the meeting yesterday.
At the summit, held between October 6 and 8 in Hà Nội, the HNX will also organise a broker networking event to connect Việt Nam’s securities firms with those in the ASEAN region. Fifty-five pairs of brokerage firms in ASEAN have set schedule for bilateral meetings.
The third networking programme for securities firms is expected to help brokerage firms in the region exchange their ideas and experiences and to improve co-operation in the securities sector.
During the summit, the HNX will also host the annual meeting for local market members. — VNS