Here, the derivatives market will be officially opened. This is considered to be a high-end product of the capital market with complex operating mechanisms that require centralized synchronization of management solutions.
With the introduction of derivatives derivative products will basically be a good start to get familiar with the market and new products.
More investment opportunities
After more than a decade, since the early days of Vietnam’s stock market, up to now, investors in Vietnam’s stock market have been familiar with products stocks, bonds, Open, closing funds … as well as how to trade – pay for these products. However, the stock market is a multi-layered market with diversified securities models.
Actually, Vietnamese investors only have access to the most basic securities products. Meanwhile, the world stock market is a complete market, most flexible to meet the needs of capital transfer, diversified portfolio, for the purpose of trading not only on stocks, bonds Such as corporate bonds, government bonds or investment fund certificates, but also for trading in a wide variety of commodity phenomena. From agriculture, precious metals, energy comes to support predicting many possible future phenomena, including weather or cabinet election results.
Therefore, the Ministry of Finance has prepared a plan to launch the derivatives market in 2017, offering more investment opportunities to the market. In the immediate future, underlying derivative products will be the best launch step for investors to get acquainted with new markets and products. Accordingly, derivative and derivative securities, characterized by a high level of securities market decentralization, product diversification and differentiation from the grassroots market, attract many investment institutions. Foreign investment will be a remarkable market for local and foreign investment community, individuals and institutional investors.
Unlimited holding
According to Decree 42/2015 / ND-CP, derivative securities are a financial instrument in which their value depends on the value of one or more underlying assets. Derivative securities are in the form of a financial contract which stipulates the rights and obligations of the parties to the contract for the payment or transfer of the underlying assets at a pre-agreed price. A certain time in the future.
Assets of derivatives are commodities including food (coffee, pepper …), metals (gold, silver, zinc …), energy (gas, oil) or non-commodities such as stocks (only , Bonds (government bonds, local bonds, corporate bonds), interest rates (bank interest rates, foreign currency rates), currencies (USD, Euro…).
When participating in derivative trading, the benefits that investors receive include: hedging when there is a need for real trading of underlying assets and risks related to price movements of assets; Investing to limit price differences is when individuals and organizations engage in the simultaneous buying and selling of one or more derivatives. The goal of the investor to limit the price difference is to take advantage of the price difference between derivatives to generate risk-free returns. With speculation, individuals and organizations do not intend to trade in underlying assets but want to take advantage of price fluctuations of underlying assets to generate short-term returns.
From the above it can be seen that the formation of derivatives market has the following advantages: Support for market liquidity, as well as allowing investors to take advantage of leverage, Fast clearing, unlimited holding, and continuous market trend prediction.
At present, the legal framework for the development and operation of the derivatives market has been improved by ministries and branches. Technology systems, propaganda to operate the market is enhanced.
| The Hanoi Stock Exchange (HNX) has issued the Regulation on the Stock Exchange of Vietnam (TTCKPS) on the HNX, specifying the requirements of information technology infrastructure for CKPS transaction and post listing procedures. Sign as a member of TTCKPS. With the promulgation of this Regulation, the system of legal documents on basic market members has been completed to prepare for the opening of securities market in Q3 / 2017. |
(May 24, 2017).