Derivatives transactions increase strongly

According to the Hanoi Stock Exchange (HNX), in the first seven months of this year, the number of futures contracts of the Vietnam’s 30 largest market cap stocks reached an average 100,000 contracts per trading session, 1.27 times higher than last year and 10 times higher than that in 2017.

Two years after its debut on August 10, 2017, more than 36 million contracts have been traded on the Vietnam’s derivatives market. Currently, the derivatives market has seven futures contract codes in according to international practice, of which four futures contract codes are on the VN30 index, including contract codes whose maturity month is the current month, the next month and the last two months of the next two quarters. Three futures contract codes are five-year government bonds whose maturity months are the last three months of the three nearest quarters.

Noticeably, after launching for more than one month, the government bond futures contracts have attracted attention of investors with more than 100 contracts having been traded. The volume of open interest at the end of July this year was 55 contracts. The volume of open interest on the derivatives market climbed 2.7 times higher, from 8,077 contracts at the end of 2017 to 20,494 contracts on July 31, 2019.

In addition, the number of derivative trading accounts strongly increased with 78,445 accounts opened by the end of July this year, nearly double that in the same period last year. There were 14 securities companies carrying out transactions of the derivatives market.

The HNX said that transactions of domestic individual investors still accounted for 91.15 percent of total trading volume in the market, slightly declined compared to 99.1 percent at the end of last year. Transactions of foreign individual investors has increased but still accounted for only 0.58 percent of total trading volume in the market.

By Nhung Nguyen – Translated by Thuy Doan

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