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Official Gazette

Saturday, September 23, 2017

Practical derivatives market operation mechanism required

Updated: 14:32’ - 25/08/2017
Deputy Prime Minister Vuong Dinh Hue has asked related management agencies to focus on preparing a strategy for development of the securities market through 2020 with a vision toward 2030, submitting to the Government a plan to merge the two stock exchanges, and amending the Securities Law in which priorities should be given to building the legal framework for future development of derivatives and derivatives market.

He made the request at the ceremony to launch the Derivatives Market at the Hanoi Stock Exchange on August 10.

He also asked these agencies to further improve legal institutions, mechanisms and policies on securities and securities market in line with international regulations and suitable to the country’s socio-economic development conditions for the comprehensive development of the securities market.

Hue emphasized the necessity to operate the derivatives market in a smooth, stable, safe, transparent and efficient manner at different levels and diversify derivatives suitable to different stages of securities market development.

Following future contracts, it was necessary to fix a proper time for the introduction of government bond derivatives and options in the market, the Deputy PM said.

He said management agencies should enhance the management and improve the mechanism of information supervision and disclosure on the derivatives market, thereby preventing risks for the financial system and guaranteeing lawful rights and interests of securities market participants.

According to Hue, the derivatives market is expected to have positive impacts on the transparency and liquidity of the primary securities market as it serves as a safe channel for raising medium- and long-term capital for domestic businesses and provides more commodities for sustainable growth of the entire securities market.- (VLLF)
 

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