Illustrative Image (Photo: VNA)

Hanoi (VNA) – Vietnam may launch its first derivatives market in the first quarter of next year, officials said at a press briefing on September 15.

“The fundamental legal framework for trading derivatives has been completed, and stock exchanges will instruct investors and traders about the trading techniques,” Ta Thanh Binh, Head of Market Development Department at the State Securities Commission (SSC), said.

The fundemental documents to this shift are a decree issued in May 2015 by the then Prime Minister on derivatives and derivatives market, and a circular issued early this year by the Ministry of Finance with guidelines for the implementation of decree.

The development progress of the derivatives market has basically gone according to plan, she said. The development of derivatives market was initially divided into three stages.

In the initial plan, legal framework and market facilitation had to be completed during 2013-15, and the market had to come into effect this year. After four years of implementation, relevant agencies would improve the quality of the market and launch other products as well.

Binh also urged the Hanoi Stock Exchange (HNX) and the Vietnam Securities Depository (VSD) to develop the implementation plan and settlement mechanisms for the trading of derivatives products.

“The SSC will soon complete minor policies regarding the operation of derivatives market, and publishing of trading details and violations,” Binh said, adding that the SSC would work with the HNX and VSD to develop regulations on the prices, fees and taxation.

“Those papers will be completed soon and published before the market officially operates.”

Binh also suggested the HNX and the VSD should work together to test the technical system within this month in order to try it in October and November with market members, including securities firms and investment funds.

In addition, the SSC, the VSD and the HNX should improve the training for investors, traders and securities firms on related issues in derivatives trading, Binh added.-VNA