22
and the clearing members has been continuous,
smooth. The transmission of transaction result
data, the announcement of the position between
the HNX, the VSD and the clearing members,
the transmission of data of cash depositing/
withdrawing activities, payment of position
losses/profits have been implemented safely and
accurately in accordance with the regulation.
The VSD has cooperated with the HNX
to bring 8 future contracts into trading and 4
expired contracts into payment, cooperated
with VTB to pay daily position losses/profits
and settle expiration payment smoothly and
safely. The average trading value of the daily
market is quite large (approximately VND 715
billion). However, the VSD applies the method
of clearing the obligations between the trading
accounts of the investors for the clearing
members. Therefore, the daily loss/profit of the
VSD accounts opened at Vietinbank is quite
small (approximately 319 million VND/day),
equivalent to 0.04% of the trading value. This
has contributed to improving the efficiency of
clearing and settlement of derivative securities,
minimizing the risk of insolvency of the clearing
members and investors.
However, in addition to the achievements,
the risk management in the derivative securities
market maintains a weakness in the eyes of the
clearing member. This weakness also requires
to be closely monitored by the regulatory and
market regulators.
Directions to the future development
Promoting the 2017 achievements,, the VSD
and concerned parties continue to implement
some key tasks in 2018 as follows:
Firstly,
to launch new products for the market.
The base stockmarket andderivative securities
market have a correlation and close relationship
with each other. Throughout the process
from founding to operation of the derivative
securities market, the management agency has
a consistent guiding viewpoint which is the
careful development along the roadmap, taking
steps to minimize negative impacts on the base
stock market.
In the first phase of the market, only VN30
future contracts were put into trading. Then in
September 2017, in the Notice No. 680/TB-BTC,
the Ministry of Finance decided to set up the
roadmap for the following product launch of
a government bonds future contract. At the
same time, the Ministry of Finance requested
the HNX, the VSD to study and develop future
contracts based on other indexes which are
expected to be accurate based on scientific
calculations.
In this regard, the VSD has made the
necessary preparations, in particular the
systematic functions of the VSD are ready for
the clearing and settlement of government bond
futures contracts. In 2018, VSD will coordinate
with concerned parties including the HNX, the
clearing members and the VTB
to get the product into trading.
With the futures contracts
on the new indexes, the
impl ement a t i on of the
new indexes will require
coordination between the VSD,
the HNX as well as the unit
responsible for calculating and
operating the set of related
indexes in the construction,
monitoring and evaluation for
a minimum period of 1 year.
Thus, it would take about a year
to introduce derivative products
on the new index (if any).
Secondly,
to collect the
Trade volume
Trade value (billionVND)
0
2,000
4,000
6,000
8,000
10,000
12,000
0
20,000
40,000
60,000
80,000
100,000
120,000
(
billionVND
)
FIGURE 1. WEEKLY DERIVATIVE SECURITIES MARKET TRADE VOLUME AND VALUE
(AUGUST 10
TH
- DECEMBER 29
TH
, 2017)
Source: HNX
