On August 10, 2017, the Hanoi Stock Exchange (HNX), under the Ministry of Finance, organized the launch and opening ceremony of Vietnam’s derivatives securities market.
Financial Software Solutions Joint Stock Company (FSS) participated in the project as a subcontractor in the implementation of the derivatives securities clearing and settlement system for the Vietnam Securities Depository (VSD). FSS was responsible for integrating the Central Counterparty Clearing (CCP) system with VSD’s securities registration, custody, clearing, and settlement system (CSD), as well as connecting the system with clearing members and the settlement bank, VietinBank.
The operation of the derivatives securities market was considered an inevitable requirement for the development of Vietnam’s securities market. Speaking at the ceremony, Vuong Dinh Hue stated that the derivatives securities market would become the third major pillar in the structure of Vietnam’s modern securities market, following the launch of the equities market in 2000 and the specialized bond market in 2009.
The introduction of the derivatives market also marked another important step in the development of Vietnam’s securities and financial markets, helping to improve the investor base and attract more foreign investors, especially institutional investors, thereby enhancing liquidity in the underlying market.
Initially, the market operated with a single product — VN30 Index futures contracts — and the participation of seven member securities firms. Among them, VNDirect Securities Corporation and Bank for Investment and Development of Vietnam Securities Joint Stock Company (BSC) utilized the FDS solution provided by FSS for managing clearing member operations and derivatives trading activities. According to HNX representatives, additional products such as HNX30 Index futures and bond futures would be introduced upon approval from regulatory authorities.
As the subcontractor responsible for system integration at VSD as well as system implementation for clearing members including VNDirect and BSC, the Securities Center team at FSS worked continuously for more than one and a half years to ensure project progress and quality in accordance with customer requirements. The project further strengthened FSS’s reputation and capabilities in the capital markets sector in particular, and in software services overall.
