Restructuring the Vietnamese securities market and building a marketfor derivative securities is crucial to the development of financialmarket, requiring careful preparations of state management authoritiesas well as the readiness of market players, the Vietnam Economic Newsreported.
Currently, the Vietnamese securities market justconsists of basic investment tools such as shares, bonds and fundcertificates.
Dr. Nguyen Son, Director of the Market DevelopmentDepartment of the State Securities Commission of Vietnam (SSC), wasquoted as saying that derivatives were indispensable products in thedevelopment process of the financial market. In Vietnam, currency andcommodity derivatives have been in use for many years. In the field ofsecurities, simple derivatives such as rights to buy securities,options, and forwards, have been used unorthodoxly. Therefore, it’s timeto develop new, diverse and attractive products such as derivativesecurities.
According to SSC Vice Chairman Nguyen Thanh Long,derivative securities are very important tools that help investorsprevent risks, and the development of the derivative securities marketwould foster the share and bond markets. However, the development ofthis complicated market requires careful preparations of investors andmarket members as well as state management authorities. The derivativesecurities market must be developed step by step to ensure systemsafety.
In March 2014, Prime Minister Nguyen Tan Dung approved aplan for developing the derivative securities market under a roadmapfor putting derivatives into transactions based on securities.
Toprepare for launching the derivative securities market, the Ministry ofFinance has drafted a decree on derivative securities market and iscollecting opinions of relevant ministries and sectors so that the draftcould be submitted to the Government for approval later this year.Along with legal preparations, the SSC, stock exchanges and securitiesdepository centres are also preparing necessary system andinfrastructure facilities while promoting investors' awareness on thenew financial product.
SSC Vice Chairman Nguyen Thanh Longalso said along with building a legal framework for the derivativesecurities market, the SSC was compiling a training curriculum in thisfield. The curriculum is expected to be issued in January 2015 for usein securities companies and banks with derivatives operations.-VNA
Currently, the Vietnamese securities market justconsists of basic investment tools such as shares, bonds and fundcertificates.
Dr. Nguyen Son, Director of the Market DevelopmentDepartment of the State Securities Commission of Vietnam (SSC), wasquoted as saying that derivatives were indispensable products in thedevelopment process of the financial market. In Vietnam, currency andcommodity derivatives have been in use for many years. In the field ofsecurities, simple derivatives such as rights to buy securities,options, and forwards, have been used unorthodoxly. Therefore, it’s timeto develop new, diverse and attractive products such as derivativesecurities.
According to SSC Vice Chairman Nguyen Thanh Long,derivative securities are very important tools that help investorsprevent risks, and the development of the derivative securities marketwould foster the share and bond markets. However, the development ofthis complicated market requires careful preparations of investors andmarket members as well as state management authorities. The derivativesecurities market must be developed step by step to ensure systemsafety.
In March 2014, Prime Minister Nguyen Tan Dung approved aplan for developing the derivative securities market under a roadmapfor putting derivatives into transactions based on securities.
Toprepare for launching the derivative securities market, the Ministry ofFinance has drafted a decree on derivative securities market and iscollecting opinions of relevant ministries and sectors so that the draftcould be submitted to the Government for approval later this year.Along with legal preparations, the SSC, stock exchanges and securitiesdepository centres are also preparing necessary system andinfrastructure facilities while promoting investors' awareness on thenew financial product.
SSC Vice Chairman Nguyen Thanh Longalso said along with building a legal framework for the derivativesecurities market, the SSC was compiling a training curriculum in thisfield. The curriculum is expected to be issued in January 2015 for usein securities companies and banks with derivatives operations.-VNA
