Workshop to introduce the derivative market (Photo:thanhtra.com)
A workshop to introduce the derivative market, expected to be launched in 2016, was opened by the State Securities Commission (SSC) in Hanoi on August 24.
Speaking at the event, Deputy General Director of the Bank for Investment and Development of Vietnam (BIDV) Tran Phuong said the derivative market is an important measure to create qualitative changes for the securities market after a long time of quantitative development.
It will also help investors prevent risks and diversify investment channels, he added.
According to Nguyen Son from the SSC, derivative market development is a crucial content in the securities market development strategy to 2020. Vietnam ’s securities market currently has only two products: shares and bonds but lacks financial tools to prevent risks and derivatives based on non-stock assets.
He also stressed the necessity of legal frameworks and management mechanisms for the market.
SSC Vice Chairman Nguyen Thanh Long said that the derivative market in Vietnam will be developed in the direction of maximising the strengths of derivatives products while attaching importance to risk management to minimise their unexpected impacts.
To prepare for the launch of the market late next year, the Vietnam Securities Depository (VSD) noted that market players should focus on building a derivative payment system compatible with the VSD’s and training human resources.
A derivative is a financial instrument that derives its value/ price from underlying assets such as stocks, bonds, currencies and interest rates, as well as commodities and market indices. The most common types of this product are futures, options, forwards and swaps.-VNA
