Restructuring the Vietnamese securities market and building a market for derivative securities is crucial to the development of financial market, requiring careful preparations of state management authorities as well as the readiness of market players, the Vietnam Economic News reported.
Currently, the Vietnamese securities market just consists of basic investment tools such as shares, bonds and fund certificates.
Dr. Nguyen Son, Director of the Market Development Department of the State Securities Commission of Vietnam (SSC), was quoted as saying that derivatives were indispensable products in the development process of the financial market. In Vietnam, currency and commodity derivatives have been in use for many years. In the field of securities, simple derivatives such as rights to buy securities, options, and forwards, have been used unorthodoxly. Therefore, it’s time to develop new, diverse and attractive products such as derivative securities.
According to SSC Vice Chairman Nguyen Thanh Long, derivative securities are very important tools that help investors prevent risks, and the development of the derivative securities market would foster the share and bond markets. However, the development of this complicated market requires careful preparations of investors and market members as well as state management authorities. The derivative securities market must be developed step by step to ensure system safety.
In March 2014, Prime Minister Nguyen Tan Dung approved a plan for developing the derivative securities market under a roadmap for putting derivatives into transactions based on securities.
To prepare for launching the derivative securities market, the Ministry of Finance has drafted a decree on derivative securities market and is collecting opinions of relevant ministries and sectors so that the draft could be submitted to the Government for approval later this year. Along with legal preparations, the SSC, stock exchanges and securities depository centres are also preparing necessary system and infrastructure facilities while promoting investors' awareness on the new financial product.
SSC Vice Chairman Nguyen Thanh Long also said along with building a legal framework for the derivative securities market, the SSC was compiling a training curriculum in this field. The curriculum is expected to be issued in January 2015 for use in securities companies and banks with derivatives operations.-VNA
Currently, the Vietnamese securities market just consists of basic investment tools such as shares, bonds and fund certificates.
Dr. Nguyen Son, Director of the Market Development Department of the State Securities Commission of Vietnam (SSC), was quoted as saying that derivatives were indispensable products in the development process of the financial market. In Vietnam, currency and commodity derivatives have been in use for many years. In the field of securities, simple derivatives such as rights to buy securities, options, and forwards, have been used unorthodoxly. Therefore, it’s time to develop new, diverse and attractive products such as derivative securities.
According to SSC Vice Chairman Nguyen Thanh Long, derivative securities are very important tools that help investors prevent risks, and the development of the derivative securities market would foster the share and bond markets. However, the development of this complicated market requires careful preparations of investors and market members as well as state management authorities. The derivative securities market must be developed step by step to ensure system safety.
In March 2014, Prime Minister Nguyen Tan Dung approved a plan for developing the derivative securities market under a roadmap for putting derivatives into transactions based on securities.
To prepare for launching the derivative securities market, the Ministry of Finance has drafted a decree on derivative securities market and is collecting opinions of relevant ministries and sectors so that the draft could be submitted to the Government for approval later this year. Along with legal preparations, the SSC, stock exchanges and securities depository centres are also preparing necessary system and infrastructure facilities while promoting investors' awareness on the new financial product.
SSC Vice Chairman Nguyen Thanh Long also said along with building a legal framework for the derivative securities market, the SSC was compiling a training curriculum in this field. The curriculum is expected to be issued in January 2015 for use in securities companies and banks with derivatives operations.-VNA
