REVIEW
of
FINANCE -
Apr. 2018
21
securities market reached 1,106,353 contracts,
equivalent to the transaction value (by nominal
contract size) of over VND 96,297 billion.
On average, the transaction volume reached
10,954 contracts per session and the nominal
transaction value reached VND 953.44 billion per
session. In August, the average trading volume
was 3,653 contracts per session. In December,
the average trading volume was 4.7 times bigger
than that in August, reaching 17,029 contracts,
of which the trading day of December 12
th
, 2017
had the largest trading volume over the past 4
months, reaching 27,994 contracts, equivalent to
the trading value of VND 2,508.56 billion.
In the last months of the year, the positive
movement of the VN30 Index in the base
securities market made the future index in
most terms rise. Short term futures contracts
continued to trade at a lower rate than the
VN30 Index, liquidity was mainly on short-
term contracts in line with international
practices. The strong fluctuation of the VN30
Index made the trading activity of the futures
contract increase sharply, especially at the end
of October, beginning of November, 2017.
The above figures show that the derivative
securities market had a successful 4 months’
time, in which the first derivative product was
the futures contract of the VN30 Index. This
product had been given interest by the investors,
thus reflecting a great potential of the market
development.
Issues of market management and monitoring
In the payment model, the VSD is the only
institution that performs the clearing and
settlement function of derivative securities
under the central counterparty model. Since the
introduction of the guidelines of the Government
and the direction of the Ministry of Finance, the
State Securities Commission (SSC), the VSD has
cooperatedwith theHNXandmarket participants
to urgently prepare necessary conditions to put
the derivative securities market into operation
as planned.
The good point is that although the market is
new in the field, there has been a rapid growth in
all aspects in the market. In general, the clearing
memberscomplystrictlywithregulationsonclearing
and settlement of derivative securities of investors,
not allowing the case of insolvent investors. To
achieve this result, the VSD has implemented many
synchronized solutions such as:
- For monitoring the risk management rate,
there has been the application of the daily
monitoring mechanism in all activities of
the clearing members and investors, thereby
detecting violations immediately if any. After
more than 4 months of operation, there have
been some cases where investors’ accounts have
violated the ratio of using collateral assets. In
these cases, the VSD sent an immediate warning
to the HNX to suspend the trading session and
notify the Clearing Member of the settlement
immediately on the same day.
- For dealingwith offending clearingmembers,
all accounts of investors violating the ratio of
using collateral assets are treated right in the
day (either paying additional margin or closing
positions), which would not cause insolvency.
However, in order to make clearing members be
aware, identify the issue in time and tighten their
risk management, especially in the first stage of
market, according to the current Regulations
on Management of Clearing Members, the VSD
has issued a decision on reprimand for some
securities companies.
The coordination between the VSD and
concerned parties (HNX, VTB) has been
smoothly implemented. The connection between
the VSD system of clearing and settlement of
derivatives with the system of the HNX, the VTB
TABLE 1: CONSOLIDATION OF ENTIRE DERIVATIVE SECURITIES TRANSACTIONS (BILLION VND)
No
Indicator
Unit
Aug. (since 10/8)
Sept
Oct
Nov
Dec
Total
1
Trading vol.
Contract
58.444
131,903 238,330 320,064 357,612
1,106,353
2
Trading
value
Billion VND
4,362.59
10,299.36 19,370.08 28,484.13 33,781.57 96,297.75
3
Ending vol.
Contract
2,166
3,275
3,949
8,122
8,077
Source: HNX
