20
DERIVATIVE SECURITIES: FINISHING STEP
INTHE STRUCTURE OF THE STOCKMARKET INVIETNAM
NGUYEN SON, PhD. -
Chairman of the Board of Directors, Vietnam Securities Depository*
On August 10
th
, 2017, the Vietnam derivative securities market was officially put into operation. This is
an important milestone in the development of the Vietnam stock market after 17 years of establishment
and development, and made Vietnam become the fifth country in ASEAN (following Singapore, Malaysia,
Indonesia and Thailand) and is the 42
nd
country in the world with derivative financial markets.
Keywords:
Securities market, derivative securities, HNX, VSD, ASEAN
Received: December 20
th
, 2017
Revised: January 18
th
, 2018
Accepted for publication: January 27
th
, 2018
Bright signals
August 10
th
, 2017 has become an important
milestone for the Vietnam securities market.
That day witnessed the official launch of the
derivative securities market consisting of
07 original clearing members, including SSI
Securities Company, VDS and 5 direct clearing
members which are securities companies: MBS,
VPBS, HSC, VCSC, BSC; 3,209 transactions/
escrow accounts opened on the system and more
than VND 28 billion deposited into the Payment
Center of Vietnam Industrial and Commercial
Bank (VTB) to be ready for trading.
The birth of Vietnam derivative securities
market (which is 13 years faster than the world’s
normal paceofdeveloping fromthebase securities
market to the derivative securities market) is
an important event to meet the expectations of
the Government, the business community and
its market members and public investors. The
derivative securities market has a positive impact
on the transparency and marketability of the
stock market, thereby increasing the liquidity,
increasing the market size, supporting the stable
and sustainable stock market and serving as
the mobilization channel of safe and long term
capital for Vietnamese economy.
On the first day of trading, the trading system
of the Hanoi Stock Exchange (HNX), the system
of clearing and settlement of derivative securities
of the Vietnam Securities Depository (VSD) and
the system of the VTB have been operating
safely and smoothly. By the end of the day, there
were 487 future contracts traded with a total
value of more than VND 36 billion, marking the
successful launch of a new market.
Since the launch, over the past more than
4 months of operation, based on the data of
business results as of December 8
th
, 2017, the
market has seen rapid growth in all aspects
compared to those on the first day of the market
launch. Details are as follows: The number of
trading accounts opened/deposited was 15,198
accounts, equavelent to an increase of 4.74 times;
The total trading volume was 16,751 contracts,
equavelent to an increase of 34.3 times; Trading
value was VND 1,569 billion, equavelent to
increase of 43.4 times; The outstanding balance
of VSD was VND 468 billion, equivalent to an
increase of 16.42 times.
The market always maintains 4 product codes
in accordance with the international practice. In
each month there is a product code maturing on
the fifth and the third of the month and the HNX
would add replacement products on the next
trading day. At the end of December 2017, four
contracts were traded: VN30F1801, VN30F1802,
VN30F1803 and VN30F1806 due in January,
February, March and June.
In general, the derivative securities market
continues to grow steadily, having the trading
volume in one month higher than that in the
previous month. During the period of more
than 4 months, there were 101 trading sessions
and the total trading volume in the derivative
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