GMEX Group has signed a joint venture agreement with Hanoi-based FPT Information System (FPT), with their partnership winning the mandate to provide technology, global business and local operational expertise to launch Vietnam’s first derivatives market and fully integrated clearing house.
The Ministry of Finance (MOF) has entrusted the Hanoi Stock Exchange (HNX) and the Vietnam Securities Depository (VSD) to operate the derivative market’s transaction activities.
“The derivatives market is an important step in creating qualitative change for the Vietnamese securities market after a long era of quantitative development,” stated GMEX.
“It will also help investors identify and mitigate risks and diversify into other investment channels. The market participants will include settlement banks, intermediaries and investors from both enterprises and investment funds.”
The new market will facilitate transactions based on stock accounts such as stock indexes, government bonds and shares. The first traded instruments will be share indexes (HNX30 and VN30) and government bonds with five-year terms.
GMEX subsidiary GMEX Technologies with FPT will manage the project to provide a multi-asset, multi-language exchange trading system suite and market surveillance solution to HNX, which will operate the derivatives exchange. The project will deliver a real-time clearing system to VSD, which will operate the clearing house. The target go live date is the fourth quarter of 2016.
GMEX added that the initiative will support 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, non-implied equity index options and non-implied single stock options.
A survey conducted by Capital One suggests around five in six plan to implement new treasury management products and services in the coming year.
The European Central Bank will extend its quantitative easing programme for nine months beyond next March, but scale back the level of bond buying from €80bn to €60bn a month.
The agreement, after three years of debate, raise questions on future investment demand, but Fitch Ratings doesnʼt anticipate major market disruption.
The European Commission fined Credit Agricole, HSBC and JPMorgan Chase a total of €485m for manipulating the price of the financial benchmark.