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Official Gazette

Sunday, July 25, 2021

Derivatives market needs more specific regulations

Updated: 10:41’ - 29/09/2014

The State Securities Commission (SSC) is finalizing a decree on derivatives and the derivatives market to be presented to the Government in the fourth quarter of this year.

Nguyen Son, director of the SSC Market Development Department, said the derivatives market would be developed from simplicity to complexity to ensure risk management and supervision in the market.

The legal framework for the derivatives market should be suitable for scale and development objectives of the derivatives market in short tem and long term, Son noted.

As derivative securities and derivatives market are new perceptions in Vietnam so the compilation of the decree will focus on market organization and standardization of products listed and traded on the market as well as inspection, supervision and handling of violations.

The decree will make adjustments regarding stocks, bonds and securities indexes and may later regulate other products of the monetary market and commodities in general under the Prime Minister-approved project to develop a centralized derivatives market.

Meanwhile, tradable products will be listed on the stock exchanges and cleared through central counterparties (CCP) of the Vietnam Securities Depository (VSD).

According to its approved development roadmap, the derivatives market will commence its operation in 2016. Apart from the finalized decree, a draft circular guiding the decree is put for investor opinions.

The SSC is planning to provide knowledge on derivatives and the derivatives market to the public as well as people involved in the market’s operation and disseminate the decree and guiding circulars as soon as they are enacted.-


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