HA NOI — New derivative tools for securities trading might be implemented in 2011, said State Securities Commission vice chairman Nguyen Doan Hung at a business forum earlier this month.
The commission was working on regulations to govern derivative tools, open-ended funds, and trading with fund indices, as well as drafting a circular on financial guarantees of securities companies, Hung said.
Securities firms would comply with requirements on financial ratios on a trial basis before the circular was issued, likely in the first quarter of 2011, he said.
"We are also asking management boards of stock exchanges, the securities depository centre, and securities companies to comply with the necessary requirements of technical systems and risk management," he added.
Domestic investors continued to lack supportive tools such as buying and selling within a single day's trade, said Tan Viet Securities Co general director Nguyen Van Dung.
Investors were limited to trading within a band of 5 per cent in HCM City and 7 in Ha Noi, but if they were allowed to buy and sell within a day, they could double profits from 10 to 14 per cent, he noted.
Investors could also cut losses sooner if shares began to plummet, since they were now limited to a four-day waiting period before they could unload newly acquired shares.
Nhu Dinh Hoa, an analyst with another Ha Noi-based securities company, concurred that trading tools would increase investor profits but had not been applied in the markets'10-year operation due to high risks.
Hung said that implementation of new derivative tools would depend on market growth.
The HCM City Stock Exchange now lists 276 securities, including 271 stocks and five fund certificates, with a total market capitalisation of VND241.5 trillion (US$11.5 billion). In Ha Noi, there are 361 listed stocks, representing capitalisation of VND133.7 trillion ($6.4 billion).Source: vnagency.com.vn
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