The Hanoi Stock Exchange and Vietnam Securities Depository are preparing to launch Vietnam’s first derivatives market and integrated clearinghouse in partnership with GMEX Group and FPT Information Systems.
The new market, which is expected to launch in the fourth quarter of this year, is part of an ongoing strategy by the State Securities Commission to develop the local securities market, which currently lacks tools to hedge risk.
As part of its strategy out to 2020, the Commission published rules for the planned derivatives platform in July 2015. Both Vietnamese and foreign investors, as well as individuals, will be permitted to invest in derivatives listed on the new market, with different sets of conditions and requirements for each investor group.
In the first instance, the market will offer futures on the roughly US$6.9bn HNX30 index with four contract months and futures on five-year government bonds with three contract months.
Other contracts will eventually be added and the initiative includes functionality for stocks, cash settled index futures, warrants, bonds, commodities, cash and physically settled equity futures, cash and physically settled bond futures, cash-settled commodity futures, cash-settled interest rate futures, contracts for differences, government bonds, single stocks, equity index options and single stock options.
Connection standards for market participants are expected to be released by HNX and VSD in April.
GMEX, the UK start-up exchange that last year launched its own iteration of interest rate swap futures contracts, will provide trading solutions including its ForumMatch orderbook platform that encompasses order float and matching/execution on a central limit order book. It will also provide a web-based multi-asset order management system to facilitate order routing to the exchange and market data dissemination.
Through its ForumDetect market surveillance platform, GMEX will also provide real-time market event analysis and post-event surveillance reports.
State-owned Hanoi Stock Exchange was established in 2005 following a restructuring of the Hanoi Securities Trading Centre. The platform currently operates three secondary trading markets comprising a listed stock market, government bond market and a market for unlisted public companies. It also organises auctions for shares and government bonds.
