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Official Gazette

Friday, July 19, 2019

Regulations on derivatives in place to boost market liquidity

Updated: 17:46’ - 26/05/2015

In order to increase the liquidity of the local stock market, the Government on May 5 issued Decree No. 42/2015/ND-CP on derivatives and derivatives market in line with the plan to launch a derivatives market by 2016.


Beating a gong to announce the listing of Soc Son Development Investment Joint-Stock Company (code DPS) on the Hanoi Stock Exchange __Photo: Tuan Anh/VNA

Derivatives to be traded on a derivatives market include futures, options on listed stocks, forwards derived from the underlying assets of stocks traded on the stock exchanges, other listed derivatives, and other put-through trading derivatives from the underlying assets traded on the stock exchanges.

Organizations and individuals are free to invest in derivatives on this market, except cases of conditional investment.

The stock exchanges are allowed to organize the trading of derivatives by the mode of order-matching or put-through trading.

Trading of listed derivatives will be carried out via the stock exchanges and their members, while clearing and settlement of listed derivatives will be made through the Vietnam Securities Depository and its members.

In addition, the stock exchanges may apply a number of measures to stabilize the stock market and protect investors, including changing the number of trading sessions and time, applying and adjusting accumulated order limits, restricting the opening of new positions, and suspending or cancelling trading orders.-


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