Opening and developing the derivatives market in vietnam,graduation thesis

STATE BANK OF VIETNAM BANKING ACADEMY OF VIETNAM FACULTY OF FOREIGN LANGUAGES  GRADUATION THESIS OPENING AND DEVELOPING THE DERIVATIVES MARKET IN VIETNAM Student : Truong Hoang Lan Chi Class : ATCB – K16 Student ID : 16A7510022 Supervisor : PhD Tran Thi Xuan Anh Hanoi, 2017 STATE BANK OF VIETNAM BANKING ACADEMY OF VIETNAM FACULTY OF FOREIGN LANGUAGES  GRADUATION THESIS OPENING AND DEVELOPING THE DERIVATIVES MARKET IN VIETNAM Student : Truong Hoang Lan Chi Class : ATCB – K16 Student ID : 16A7510022 Supervisor : PhD Tran Thi Xuan Anh Hanoi, 2017 Banking Academy of Vietnam Graduation Thesis DECLARATION I hereby confirm that this thesis has been composed solely by myself and that has not been submitted, in whole or in part, in any previous application for a degree Except where states otherwise by reference or acknowledgement, the work presented is entirely my own work Signature Truong Hoang Lan Chi Student: Truong Hoang Lan Chi – 16A7510022 Banking Academy of Vietnam Graduation Thesis DEDICATION Firstly, I would like to dedicate this graduation thesis to the Banking Academy of Vietnam where I had various opportunities to study and develop the necessary skills for my work Furthermore, I also devote it to all lectures and friends who are working and studying in the Faculty of Foreign Languages Finally, my graduation thesis is reserved to my beloved parents and relatives Student: Truong Hoang Lan Chi – 16A7510022 Banking Academy of Vietnam Graduation Thesis ACKNOWLEDGEMENT I could not be able to complete successfully my graduation thesis without supporting of a number of people First and foremost, I would like to thank Mrs Tran Thi Xuan Anh for her guidance She has been the ideal thesis supervisor because of her sage advice, insightful criticisms, and patient encouragement aided the writing of this thesis in innumerable ways Once again, I thank you from the bottom of my heart To my dear family, I owe them so much for their undying support, and their unwavering belief that I could achieve so much Had it not been for all their prayers and benedictions, were it not for their sincere love and help, I would never have completed my graduation thesis I will be forever thankful to them Last but not least, I am very fortunate and grateful to my best friends: Miss Dan; Miss Ngat; Miss Nhi; and Miss Ai We have together experienced a four-year university life with manifold remarkable milestones, and I constantly respect our friendship It is really a very treasure I have in my whole life Thank you so much Thank for all your encouragement! Student: Truong Hoang Lan Chi – 16A7510022 Banking Academy of Vietnam Graduation Thesis ABSTRACT Vietnam’s securities market has contributed to raising capital for the economy and diversifying the Vietnamese financial market However, the size of Vietnam’s securities market is small compared to the economy and to regional countries’ securites markets Demand for development and international economic integration requires Vietnam’s securities market to expand its scale, improve its structure, enhance quality and diversify products in accordance with international practices The introduction of the Vietnamese derivatives market is also expected to provide additional tools to prevent risks and meet investor demand on high-level financial products in Vietnam’s securiteies market Authorities hope it will also contribute to attracting more foreign investors and improve liquidity According to financial experts, the Vietnamese derivatives market will offer many opportunities for businesses and investors as the nature of derivatives is risk prevention Investors, especially large foreign investment funds, will actively invest in Vietnam’s securites market, contributing to increasing its liquidity, while Vietnamese businesses will be provided with more opportunities to raise capital for their trade and production activities Therefore, this graduation thesis adresses on researching the current situation of Vietnam derivatives market to analyze and evaluate its operation Then, Government and related agencies could offer usefull solutions to enhance this market quality with the target that Vietnam derivatives market could achieve a high position in the global derivatives market Student: Truong Hoang Lan Chi – 16A7510022 Banking Academy of Vietnam Graduation Thesis TABLE OF CONTENT DECLARATION DEDICATION ACKNOWLEDGEMENT ABSTRACT LIST OF FIGURES LIST OF ABBREVIATIONS INTRODUCTION CHAPTER I: THE DERIVATIVES MARKET FRAMEWORK 1.1 Overview of derivatives markets 1.1.1 Definition and characteristics of derivatives 1.1.2 Functions of derivatives markets 1.1.3 Players of derivatives markets 1.1.4 Products of derivatives markets 1.2 Factors shaping derivatives markets 14 1.2.1 Institution factors 15 1.2.2 Legal policy factors 15 1.2.3 Economics factors 16 1.2.4 Cultural-Social factors 16 1.2.5 Technology factors 16 1.3 Experience from other countries 16 1.3.1 In Singapore 18 Student: Truong Hoang Lan Chi – 16A7510022 Banking Academy of Vietnam Graduation Thesis 1.3.2 In Korea 19 1.3.3 In Japan 20 1.3.4 In China 20 CHAPTER II: VIETNAM’S DERIVATIVES MARKET SITUATION 24 2.1 The need for Vietnam’s derivatives market 24 2.2 Legal framework for Vietnam’s derivatives market 32 2.3 Current situation of Vietnam’s derivatives market 37 2.3.1 Instruments 38 2.3.2 Players 43 2.3.3 Regulators 45 CHAPTER III: SOLUTIONS FOR VIETNAM’S DERIVATIVES MARKET 49 3.1 Training and propagating activities 49 3.2 Policy mechanism 51 3.3 The legal framework and risk management 51 CONCLUSION 53 REFERENCES Student: Truong Hoang Lan Chi – 16A7510022 Banking Academy of Vietnam Graduation Thesis LIST OF FIGURES Table Page Table 1.1: Comparison between forward contracts and futures contracts 10 Table 1.2: Comparison between the options buyer and the options seller 11 Table 1.3: The positions in the options market 12 Table 1.4: Summary of the derivatives market affecting factors 14 Table 2.1: The size of Vietnam’s bond market 25 Figure Chart 1.1: Global traded derivatives contract volume in the period of 2013- Page 17 2015 Chart 2.1: Rates of market capitalization in Vietnam from 2010 to 2014 28 Chart 2.2: VN30 - Index from 2014 to 2016 40 Chart 2.3: VN30 – Index in April 2017 40 Chart 2.4: The operational modules of VNDMI 42 Student: Truong Hoang Lan Chi – 16A7510022 Banking Academy of Vietnam Graduation Thesis LIST OF ABBREVIATIONS AGR Agribank Securities Joint Stock Corporation APEC Asia - Pacific Economic Cooperation ASEAN Association of Southeast Asian Nations ASEM Asian - Europe Meeting BVSC Baoviet Securities Company CBRC Chinese Banking Regulatory Commission CIRC China Insurance Regulatory Commission CSRC China Securities Regulatory Commission FPTS FPT Securities Joint Stock Company GDP Gross Domestic Product HCMIU Ho Chi Minh International University HNX Hanoi Stock Exchange HOSE Ho Chi Minh Stock Exchange HSBC Hongkong and Shanghai Banking Corporation HSC Ho Chi Minh City Securities Corporation IFRC Intelligent Financial Research and Consulting KFE Korean Futures Exchange KIS KIS Vietnam Securities Corporation KRX Korean Exchange MAS Monetary Authority of Singapore MBS MB Securities Joint Stock Company NAFMII National Association of Financial Market Institution Investors Student: Truong Hoang Lan Chi – 16A7510022 Banking Academy of Vietnam Graduation Thesis Chart 2.4: The operational module of VNDMI Source: VNDMI.com VNDMI is going to be the portal Vietnam derivatives market with all functions of the parties VNDMI will be the first portal, which produces a derivatives market in Vietnam, and it also includes full information, data, tools for education and research, pedagogical games intended to connect Vietnam and international universities through exchange of expertise and topics of the contest to ensure these objectives: VNDMI will keep stakeholders like regulators, market makers, arbitrageurs, brokers, clearers, and end-users, to engage and connect to the real-world mechanics of derivative markets Moreover, it also provides the ability of simulating trades, testing strategies, understanding the potential risks before trading in the market Therefore, users can have some experiments with complex orders and advanced strategies, encouraging the investors, including students, to learn more about the derivatives market both in terms of theory and practice through the academic games Student: Truong Hoang Lan Chi – 16A7510022 42 Banking Academy of Vietnam Graduation Thesis Online training will be supplemented by practical experience through learning theory and practice to get the attention from overseas users on this portal for full information, data, tools and training Additionally, VNDMI will attract researchers within the country or abroad, first for Vietnam’s stock market and second for the development of the derivatives market (short selling, stock lending, liquidity cash, cost, ) This project has been implemented in reality Although it does still not become more popular in reality, in the near future, this is definitely an important information providing and training channel for people who want to participate in Vietnam derivatives market 2.2.2 Players: According to Decree No 42/2015/ND-CP on derivatives and the derivatives market, and Circular No 11/2016/TT-BTC for guidelines a number of contents of Decree No 42/2015/ND-CP, securities companies participating in the derivatives market must meet the criteria about financial capacity, business performance, proportion of capital available In particular, for derivatives trading activities, securities companies must have a minimum charter capital and owner’s equity of 600 billion dong To participate in derivatives brokerage operations, securities companies need to have a capital of 800 billion dong or more Besides, these companies have no accumulated losses, no loss in the last years and not being in the situation of consolidation, merger, dissolution, bankruptcy, audit, special control The Top 10 companies in brokerage market shares, such as: SSI; HSC; VCSC; BVSC; FPTS; KIS; MBS that satisfy the criteria of both capital and business performance Now, there are about 20 over 73 securities companies having the charter capital and owner’s equity of above 600 billion dong However, when applying the conditions relating to accumulated loss, and evaluating system development costs for derivatives transactions, there are currently only securities companies with the largest market shares that could participate in Vietnam derivatives market Student: Truong Hoang Lan Chi – 16A7510022 43 Banking Academy of Vietnam Graduation Thesis Previously, numerous securities companies make an effort to enhance charter capitals and improve business operation results to comply with conditions in the derivatives market For example, TCBS increased its charter capital from 300 billion dong to 1,000 billion dong in 2014 By the end of 2016, TCBS's charter capital was 1,902 billion dong VDSC, another securities company, also raised its own charter capital to 700 billion dong and cleared its accumulated losses In this year, VDSC set a plan to gain its charter capital of 910 billion dong, and to reach 2,500 billion dong by 2021 Besides, SHS planned to merge SHBS to achieve a new higher position in the securities market In contrast, there are some regrettable securities companies that miss opportunities to enter into the derivatives market In securities sector, AGR has the second largest charter capital (only ranked behind SSI) and the sixth largest equity in the market, namely is 120 billion dong and1,648 billion dong Nevertheless, AGR lost for two consecutive years from 2015 to 2016, and the accumulated loss at the end of 2016 was over 560 billion dong Other circumstance is SBS Although this company has more than 1,267 billion dong of charter capital, its own equity is only 215 billion dong, and by the end of 2016, SBS has 1,312 billion dong relating accumulated loss Like SHS case, OSC also has enough 600 billion dong of charter capital, but OSC’s equity has only 395 billion dong, and it still remains the accumulated loss of 213 billion dong PSI, TVSI, WSS are another situations They are nearly meet rules about the charter capital and equity, in which PSI needs to clear its accumulated loss of 69 billion dong in order to take part in this market Recently, SJSC has plans to join Vietnam derivatives market by implementing simultaneously two activities: Increasing charter capital from 53 billion dong to 800 billion dong; Consolidating with another company The capital increasing program will be divided into two stages: First stage will increase from 53 billion dong to 300 billion dong, and the last one will be up to 800 billion dong Student: Truong Hoang Lan Chi – 16A7510022 44 Banking Academy of Vietnam Graduation Thesis The derivatives market in Vietnam has the optimistic prospects to help securities companies improve business results It is forecasted that more securities companies will be eligible to participate in the derivatives market in the near future 2.2.3 Regulators: According to Decree No 42/2015/ND-CP, the Ministry of Finance and SSC, as the direct authorities, are entitled to license derivatives businesses and transactions as well as listed derivatives products at the Stock Exchange (HNX) Furthermore, HNX and VSD will also indirectly participate in managing and supervising operations of the derivatives market Currently, the derivatives market is not officially launched, but it is in last steps of the preparation Therefore, these regulators now address on adjusting and finishing fundamental elements to operate the derivatives market in practice The first point to mention is training and propagating activities about derivatives market because if there is not preparation about necessary information, it will be a huge challenge for both supervisors and participants Recognizing the importance of this action, besides, participating in writing materials about derivatives under SSC's training scheme, HNX also actively prepares documents and participates in presentations at conferences held by SSC Apart from that, HNX coordinates with international partners to invite international experts attend seminars and supports member units to take part in the program about experience survey deployed in other derivatives market in the region, which is considered the premise for member units when entering the market On August 24th 2015 in Hanoi, SSC cooperated with BIDV and VIASM to organize the workshop on "Running Vietnam Derivatives market" Especially at this conference, there were the presences of Professor Ngo Bao Chau and Professor Henri Berestycki - former director of financial math center at the University of Chicago USA Student: Truong Hoang Lan Chi – 16A7510022 45 Banking Academy of Vietnam Graduation Thesis At the same time, SSC also held introductory sessions, and disseminated knowledge through seminars, including the seminars about derivatives held in September 2015 for journalist In order to further improve the organization of the derivatives market and push the market participants' ability to participate in the derivatives market, in two days 12th 13th November 2015, SSC collaborated with Maybank Kim Eng Group hold a workshop on "International Experience on Derivatives" in Ho Chi Minh City By 2016, typically on November 10th, SSC together with HNX and VSD hold a seminar on "Risk Management in the Derivatives market in Vietnam" in order to help members and investors understand the knowledge about market risks, so that risk prevention measures can be taken to build a sustainable derivatives market And the most recent event was the "Derivatives and Derivatives market Training Program" which took place in three days from 11th to 13th January 2017 in Hanoi by SSC in collaboration with the Development Cooperation Agency Luxembourg jointly to organize This is a program within the framework of Technical Capacity Building Project VIE032 "Building capacity in Financial Sector" between the Government of Vietnam and the Government of Luxemburg In the other hand, to run the derivatives market in the best way, there is no shortage of technological systems They are trading system and clearing settlement system of the derivatives market On the morning of March 16th 2016, HNX and VSD announced the model and plan to develop a trading system and clearing settlement system for derivatives Mr Duong Van Thanh, VSD's General Director, said that HNX and VSD selected FIS as the main contractor and GMEX as the solution provider for these two systems GMEX solutions for trading system and clearing settlement system are evaluated with many flexible features They can be customized according to the market management requirements and the states of development GMEX has been supplied to many markets such as the United Kingdom, New Zealand, Dubai and is assessed to satisfy Student: Truong Hoang Lan Chi – 16A7510022 46 Banking Academy of Vietnam Graduation Thesis international standards for supplying trading and post-trading services in accordance with international recommendations (ISOCO, BIS) For Vietnam, available features on systems have basically fulfilled the business requirements for transactions and clearing settlements in the immediate term as well as in the future With the trading system, Mr Nguyen Anh Phong, HNX's Deputy General Director, said that the derivatives trading system was designed with three functions: Managing members; Transactions and statistics; Warning and hedging The operation of the trading system will classify and differentiate rights for two types of regular trading members and market makers In particular, market makers can be able to create markets for each type of derivatives contracts, and manage members basing on the principles: Quotation; Transaction volume; Quotation date It allows online transactions following to FIX standards, API standards, and remote transactions on the web Derivatives trading system capacity can handle up to 15,000 orders through FIX reaching 5,000 orders per second, and APIs reaching 150,000 orders per second With clearing settlement activities of derivatives, the Ministry of Finance has assigned this task directly to VSD since July 2015 Clearing, settlement and risk management in this market are performed according to CCP Mr Duong Ngoc Tuan, VSD’s Deputy General Director, said that the system would be designed flexibly with modules combining with instruments to manage accounts, positions, collaterals, and support calculating margin This system has an ability to particularly manage investors’ account, satisfy at least 600,000 accounts, and handle over 15,000 payment transactions per minute On April 28th 2016, HNX has officially announced the connection standard that is FIX version 4.4 This is one of the common connection standards for trading on the securities market, which is widely used in the world today The use of FIX 4.4 has been applied by HNX since 2010, so it will help members to save their investment costs because they can take advantage of the current system Additionally, the connection to the payment bank is in accordance with ISO15022; Student: Truong Hoang Lan Chi – 16A7510022 47 Banking Academy of Vietnam Graduation Thesis specially, clearing members can connect to the online gateway according to ISO15022 or the electronic interface terminal As the plan, the test of this trading system is composed of four parties between VSD, HNX, the settlement banks - VietinBank and securities companies went from mid October to the end of 2016 The first test started on October 17th 2016, and the next round took place from December 20th 2016 and ended in April 2017 Previously, three – party test between HNX, VSD and settlement banks was implemented in August 2016 to correct the mistakes and improve the trading system’s operation In general, to reach such an initial successes in the goal of opening and developing the derivatives market, the government and related agencies have put a lot of effort into it It is also a significant step for Vietnam's derivatives market in the near future From the current situation of the derivatives market in Vietnam, it could be seen that this market still has its obvious drawbacks, so in the Chapter III, these problems will be suggested some measures to solve Student: Truong Hoang Lan Chi – 16A7510022 48 Banking Academy of Vietnam Graduation Thesis CHAPTER III SOLUTIONS FOR VIETNAM DERIVATIVES MARKET The derivatives market in Vietnam is becoming the focus of the economy because it is expected that the economy will gradually change and improve in the positive direction However, the derivatives market is complex, particularly in the implementation period It is worth for exploring and developing, but they are also quite challenging when the Government and related agencies set up plans to push their development Therefore, some groups of solutions are proposed as follows: 3.1 Training and propagating activities: In general, the dissemination and propaganda of basic knowledge about derivatives and the derivatives market was implemented in two continuous years 2015 and 2016 in various forms, such as through SSC's electronic portal, published magazines, or TV channels along with intensive training programs Practitioner training has been implemented on the basis of the new material since April 2015 So far, the content of the legal framework, trading mechanism and how to operate this market has been announced via extensive workshops in both Hanoi and Ho Chi Minh City Although training and propagating activities on the derivatives market have been paid much attention recently, this task has not yet been completely comprehensive and popular to the public: Knowledge and update on derivatives and the derivatives market are still limited on websites (mainly via SSC portal but the information is still limited) The Securities Research and Trading Center (SRTC) in collaboration with VTV2 channel organized the program "Learn about the derivatives market" This program was broadcasted at 14.00 on Wednesdays and Fridays every week on VTV2 from November 26th to December 19th 2014 At present, the program is not maintaining on a Student: Truong Hoang Lan Chi – 16A7510022 49 Banking Academy of Vietnam Graduation Thesis regular basis, although these programs like this are very necessary in the preparation state for the launch of the derivatives market The famous economic universities in Vietnam still not consider derivatives subject as a compulsory subject in their educating program Most training programs on derivatives and the derivatives market in these institutions are integrated into some subjects, such as: International Finance, Financial Markets and Institutions, Securities Market, Trading in Securities, Valuing Financial Products, and Analyzing Securities Investment Specifically: University of Economics, Ho Chi Minh City: Banking and Finance has five majors; however, only securities major has the derivatives subject, and this subject is an optional one Danang University of Economics: Banking and Finance has three majors, but only Corporate Finance major has the derivatives subject as a compulsory unit National Economics University: Both Banking and Corporate Finance major not separate in teaching the derivatives subject From the actual situation of the propaganda about derivatives and the derivatives market, some suggested solutions: Strengthening the dissemination of basic knowledge In the immediate term, related agencies should focus on introducing about derivatives products to be put into operation firstly, such as stock index futures contracts, and bond futures contracts through various websites, especially websites providing information on basic securities are frequently accessed as: cophieu68.com, cafef.vn, fpts.com.vn, stockbiz.vn Otherwise, it is essential to broadcast training programs to investors on television channels, especially at the golden hours - broadcasting time in order to attract crowd audiences Applying remote learning and online learning programs In addition to direct training programs about derivatives, remote and online learning schedules should be applied by SSC to save costs, expand the scope and number of Student: Truong Hoang Lan Chi – 16A7510022 50 Banking Academy of Vietnam Graduation Thesis learners At present, the computer and information technology systems of the market members, training facilities are enhanced significantly They can access and use this form of training easily Teaching the derivatives subject as a compulsory subject in economic universities Universities in the economic sector should consider introducing the derivatives subject into teaching schedules It will be a compulsory subject in the major of finance and banking Other majors should also add this subject as optional modules or incorporate the subject content into relevant subjects) 3.2 Policy mechanisms: Firstly, the tax on profits derived from the investment in derivatives instruments can reduce liquidity and hinder the development of the Vietnam derivatives market in the initial periods; specially for derivatives instruments used for hedging purposes to maximize returns rather than to profit from derivatives speculation Therefore, a preferential mechanism for derivatives investment could be applied to boost investors in the market stage to be relatively new to the public Besides, Vietnam will operate the stock market with two initial products namely stock index futures (VN30, HNX30), and bond futures This is a prudential step but reasonable one in the background that Vietnam has not had much experience with this new market In the next stage, other derivatives products (as options) should be deployed as soon as possible according to other countries in the world In May 1996, the first stock index futures contract (KOSPI200) was traded on the South Korean derivatives market, and in July 1997, the Korea Securities Authority made a decision to run the KOSPI 200 options market and achieved various meaningful successes 3.3 The legal framework and risk management: To prepare for operating the derivatives market in Vietnam, the legal framework includes Decision No.366/QD-TTg approving the project on building and development of Vietnam derivatives market, Decree No 42/2015/ND- CP on derivatives, and the derivatives market, Circular No 11/2016/TT-BTC guiding some Student: Truong Hoang Lan Chi – 16A7510022 51 Banking Academy of Vietnam Graduation Thesis articles of Decree No 42/2015/ND-CP, and the latest Circular No 23/2017/TT-BTC As a result, the initial conditions for the formation of the derivatives market, including: Market participant; Information technology; Management; Inspection; Supervision; Clearing and settlement of derivatives are quite sufficient However, in order to enhance the effectiveness of risk prevention and promote the development of this market, a number of methods need to be addressed: The law makers continue to improve the legal system related to the derivatives market, especially relevant issues with accounting for derivatives transactions In the other hand, the Government quickly promulgates regulations relating to the establishment of principles, accounting standards, financial statements, and financial statements using derivatives instruments, which is based on inheritance of international accounting standards At present, there are some fundamental differences between International Financial Reporting Standards and Vietnam Accounting Standards such as: Presentation of financial statements; Reasonable value; Financial instruments; Impairment of property; Issues relating to consolidated financial statements; Revenue; Fixed assets, real estate, long-term assets for sale; Payment by stocks… SSC works with VIASM, and Fmathlab to conduct financial mathematics in the derivatives market; especially, the application of mathematical models in derivatives portfolio valuation and management Thus, it could be built a reliable indicator system that accurately reflects the supply and demand situation of the market for reference in derivatives transactions Student: Truong Hoang Lan Chi – 16A7510022 52 Banking Academy of Vietnam Graduation Thesis CONCLUSION Opening the derivatives market means that Vietnam will participates in the community of more than 40 countries and territories in the world with this high-end financial market The derivatives market will be born after nearly 20 years of Vietnam securities market operation However, this is not a late start to develop a new market at a higher level By that time, it is necessary for the community of investors, enterprises as well as other members in the market to familiarize and widen their business knowledge and ethics, use adeptly instruments in the securities market to satisfy the goal of sustainable development The financial market in Vietnam has been deeply integrated with the participation of more and more foreign institutions and professional investment institutions; therefore, it is necessary to diversify instruments for the risk preventions, meet the lucrative needs, and reach progressively the standards of a modern financial market In Southeast Asia, there are currently only four markets with traded derivatives: Singapore, Malaysia, Indonesia and Thailand Now, Vietnam will be the fifth market for conducting these products The emergence of the derivatives market is also demanded by international financial institutions, as well as a further step to create the financial market attraction of Vietnam in general, and draw international investment flows For financial investment institutions, a market that wants to get out of the initial state and be able to invest always needs risk-prevention tools Unlike individual investors, large institutional investors can not change their positions quickly and see a drop in long-term portfolio value that can not be a lock performance with some defensive instruments Therefore, when the derivatives market was launched in Vietnam, although in initial period, there are only two simple products, it is still a big step towards the international standard of an emerging market Student: Truong Hoang Lan Chi – 16A7510022 53 Banking Academy of Vietnam Graduation Thesis REFERENCES Book and Document Robert L.McDonald, Derivatives marketsbook third edition John Downes and John Ellite Goodman, Dictionary of Finance and Investment Terms John C Hull, Options, Futures, and other Derivatives book eighth edition Saunders and Cornett, Financial Markets and Institutions book fourth edition Cecchetti, Money, Banking, and Financial Markets book second edition Law on Securities No 70/2006/QH11 Law on Securities No 62/2010 QH12 Circular No 74/2011/TT-BTC guiding securities trading Decision No 366/2014/QD-TTg approving the plan on formation and development of Vietnam’s derivatives market 10 Decree No 42/2015/ND-CP of Government on derivatives and the derivatives market 11 Circular No 11/2016/TT-BTC for guidelines a number of contents of the Government’s decree No 42/2015/ND-CP 12 Circular No 23/2017/TT-BTC for amending and supplementing a number of articles of Circular No.11/2016/TT-BTC and instructing a number of articles of Decree No 42/2015/ND-CP of the Government on derivatives and derivatives market 13 Document No 08/VBHN-BTC Newspaper articles Bui Thuy Nam (2010), “Phat trien cong cu phai sinh tren thi truong chung khoan Viet Nam” Ho Quoc Tuan and Phung Duc Nam (2017), “Bai hoc tu chung khoan phai sinh cua Trung Quoc” Student: Truong Hoang Lan Chi – 16A7510022 Banking Academy of Vietnam Graduation Thesis Vo Thi Phuong (2016), “Phat trien thi truong chung khoan phai sinh: Kinh nghiem tu cac nuoc chau A” Dubravko Mihaljeka and Frank Packer (2010), “Derivatives markets in Emerging Countries Phan Thi Thu Hien - Deputy Director of Finance and Banking Department and Financial Institutions ( The Ministry of Finance) (2014), “Thi truong trai phieu Viet Nam dinh huong va phat trien” VnEconomy.vn (2017), “Chung khoan phai sinh truoc gio G (1): Buoc chuyen ve chat cua chung khoan Viet” VnEconomy.vn (2017), “Chung khoan phai sinh truoc gio G (2): San pham la gi va giao dich nhu the nao?” VnEconomy.vn (2017), “Chung khoan phai sinh truoc gio G (3): Ky vong rui ro, mua, toi ban” Tapchitaichinh (2017), “Nhieu cong ty chung khoan khong kip vao san choi phai sinh” 10 Dantri.com.vn (2014), “Thi truong chung khoan Viet Nam co quy mo tren 32% GDP” 11 Finance and Banking Department and Financial Institutions (The Ministry of Finance) (2014), “Tong quan ve thi truong tai chinh Viet Nam: Thuc trang va giai phap” 12 Ngo Thi Thuy Linh (2015), “Thuc trang su dung cong cu tai chinh phai sinh o Viet Nam phong ngua rui ro” 13 Nguyen Son – Head of Market Development Department (The State Securities Commitsion), “Xay dung thi truong chung khoan phai sinh tai Viet Nam” 14 Le Thi Thuy Dung and Le Anh Phe (2015), “Vai tro cua thi truong von tai co cau nen kinh te Viet Nam 2016-2020” 15 Baodauthau.vn (2017), “Co so phap ly cho chung khoan phai sinh doi da dong bo” 16 Tapchitaichinh.vn (2017), “Thi truong chung khoan phai sinh da du dieu kien de van hanh” Student: Truong Hoang Lan Chi – 16A7510022 Banking Academy of Vietnam Graduation Thesis 17 Hanoi Stock Exchange (2015), “Mot so cau hoi ve thi truong chung khoan phai sinh tai Viet Nam” 18 Hanoi Stock Exchange (2015), “Mo hinh thi truong chung khoan phai sinh tai Viet Nam” Useful Websites www.ssc.gov.vn www.hnx.vn www.vsd.vn www.srtc.org.vn www.vndmi.com www.marketvoice.com www.cafef.vn www.stockbiz.com Student: Truong Hoang Lan Chi – 16A7510022