Covered warrants begin trading in HOSE

June, 29/2019 - 07:26

Trading in covered warrants began on the Hồ Chí Minh Stock Exchange yesterday (June 28).


The HCM Stock Exchange organised a ceremony in HCM City on June 28 to inaugurate the trading of covered warrants. — Photo courtesy of HOSE


HCM CITY — Trading in covered warrants began on the Hồ Chí Minh Stock Exchange yesterday.

CWs are issued by securities enterprises, and their trading is similar to that of stocks.

In the initial phase, the market will focus on call options and follow the European model.

In the first session 10 warrant codes issued by seven securities firms, with a total volume of 21.9 million CWs, were listed and traded.

Speaking at the launch ceremony, Deputy Minister of Finance Huỳnh Quang Hải said Việt Nam’s stock market capitalisation at the end of May was VNĐ4.3 quadrillion (US$184.7 billion), equivalent to 78 per cent of last year’s GDP and 11.2 per cent up from early 2019.

“After 19 years of operation of the stock market with traditional products such as stocks, bonds, fund certificates, and futures contracts, the launch of covered warrants would help perfect the Vietnamese stock market, diversifying investment options and increasing liquidity.”

He directed relevant units to closely co-ordinate to manage and oversee the issuance and trading of the new product to ensure stable market operation and protect investors' interests.

They should report any issues that arise so that the legal framework could be adjusted, he said.

Johan Nyvene, CEO of HCM City Securities Corporation, said CWs are expected to bring new strength to the securities market and attract investors.

Lê Hải Trà, acting chairman of HOSE, said the launch of CWs is an important milestone for the HCM City and Việt Nam securities markets.

The State Securities Commission of Việt Nam said to protect investors it has created a legal framework and technical infrastructure for CW trading. — VNS