02 types of derivatives traded on derivative market in Vietnam

Recently, the Government of Vietnam issued the Decree No. 158/2020/NĐ-CP on derivatives and derivative market.

chứng khoán phái sinh giao dịch trên thị trường chứng khoán phái sinh, Nghị định 158/2020/NĐ-CP

According to the Decree No. 158/2020/NĐ-CP of the Vietnam’s Government, derivatives traded on derivative market include:

(1) Futures and listed options based on underlying assets which are securities, securities indexes or other assets prescribed by the Government upon which the derivative price is based;

(2) Forward contracts and options traded by adopting put-through trading method based on underlying assets which are securities and securities indexes on Stock Exchange (SE).

However, it is noted that derivatives traded on SE must bear the following contents:

- Information about the underlying asset such as name, ticker symbol and other relevant information;

- Information about the derivative, including: name and extent of the contract, trading method, position limit, trading time limit, maturity date, final settlement date, final trading date, listing date, payment method, bid increment, quotation unit, daily trading limit, method for determination of daily settlement price, final settlement price, reference price, and margin;

- With regard to options, additional information about the type of option (call or put), style of option (the option is exercised only at the expiration date, or the option is exercised at any time before or at the expiration date), and exercise price must be also provided.

Besides, SE shall delist derivatives in the following cases:

- The derivative becomes due;

- The underlying asset of the derivative has been delisted or has not been used as the underlying asset;

- The derivative is delisted in other cases where the delisting is deemed necessary by the State Securities Commission of Vietnam (SSC) to protect investors' rights and interests.

More details at the Decree No. 158/2020/NĐ-CP of the Vietnam’s Government, effective from January 01, 2021.

Ty Na


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