Avenir partners with FPT to launch Vietnam’s first derivatives market and clearing house

Delivering innovation in exchange traded derivative contracts to be traded on Hanoi Stock Exchange and centrally cleared by Vietnam Securities Depository

GMEX Group has entered into a joint venture agreement with FPT Information System (FPT) based in Hanoi. The partnership has been awarded the mandate to provide technology, global business and local operational expertise to launch the first Derivatives market and fully integrated clearing house in Vietnam. The Ministry of Finance (MOF) has entrusted the HNX and the Vietnam Securities Depository (VSD) to operate the derivative market’s transaction

The derivatives market is an important step in creating qualitative change for the Vietnamese securities market after a long era of quantitative development. 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 Technologies (GMEX Tech), with FPT, will manage the project to provide a multiasset, multi-language exchange trading system suite and market surveillance solution to HNX, who will operate the derivatives exchange. The project will deliver a real-time clearing system to VSD, who will operate the clearing house. The target go live date is Q4 2016.

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
2 differences, government bonds, single stocks, non-implied equity index options and nonimplied single stock options.

This initiative highlights GMEX continued focus on innovative new products and emerging market development as well as growth through a unique sustainable partnership-driven model.