SSI to expand into derivatives hinh anh 1SSI's new business will cover derivative securities brokerage, proprietary trading, consultancy as well as clearing and settlement service. (Photo

HCM City (VNA) - Shareholders of Saigon Securities Inc on April 25 approved the company’s expansion into derivatives trading, which has yet to begin in Vietnam, however.

A circular issued by the Ministry of Finance in January stipulates that a securities company must obtain approval from its shareholders to begin derivative trading.

SSI derivative trading will cover broking, proprietary trading, consultancy and clearance and settlement services.

The company will also issue covered warrants once legal regulations are in place.

The shareholders’ meeting where approval for derivatives trading was obtained also agreed on a revenue target of 1.43 trillion VND (64 million USD) this year and pre-tax profit of 950 billion VND.

Last year they were respectively 1.33 trillion VND and 1.06 trillion VND.

The company had the highest market share on both the HCM City and Hanoi exchanges with a combined 12.13 percent.

Company Chairman Nguyen Duy Hung highlighted the success of its investment banking services, with its clients including property developer Novaland, which raised 1 trillion VND in the stock market, Digiworld (250 billion VND) and Quang Ngai Sugar Company, which sold almost 300 billion VND worth of stakes to foreign investors.

Its investment banking services fetched revenues of 57 billion VND, up 125 percent from 2014.

Its SSI Asset Management Company was the first domestic fund to raise money from European institutional investors, using the undisclosed sum to establish the Andbank Investment SIF – Vietnam Value and Income Portfolio.

It also raised 32 million USD in cooperation with Japanese partner Daiwa Securities Company for the DAIWA-SSIAM Vietnam Growth Fund II LP, which focuses on private companies operating in the agriculture, aquaculture and consumer goods sectors.-VNA