HoSE: Research to expand the underlying securities portfolio for CW outside VN30
At the press conference on the afternoon of July 3, the representative of Ho Chi Minh City Stock Exchange (HoSE) said that after one year of implementing the warranted warrant product (CW), it has also gained certain achievements.
In the first session, only 10 stocks were offered with a volume of 21.9 million units. After 1 year of implementation, there were 134 stocks offered with volume of 410 million units. The number of base stocks increased from 6 to 22. At the same time, the liquidity of the warrant market also increased sharply, the average daily trading volume increased from 2.9 million to 4.3 million; The average daily trading value increased from VND 5.66 billion to VND 6.41 billion.
The product attracted 8 leading securities companies in Vietnam to participate in the issuance. In particular, the top 3 organizations in terms of CW issuance value are SSI Securities, KIS Securities, HSC Securities with the value of VND 287.6 billion, VND 279 billion and VND 215 billion respectively.
HoSE representative said that the Securities Law 2019 has been passed and the State Securities Commission is rushing to build relevant documents and circulars for implementation. The market will continue to produce more products to the market, in which CW will continue to be invested and developed in the coming time.
HoSE will continue to improve Circular 107/2016 / TT-BTC, especially to correct shortcomings in the direction of reducing the time and procedures for issuing to accelerate the process of offering and listing. At the same time, the study expanded the underlying securities portfolio so that CW could issue instead of currently being limited to the VN30 basket.
In addition, after 3 years of pre-feasibility studies to bring CW products to market, HoSE’s product development team chooses the right to buy and pay with money at maturity due to the prudent principle. The department also aims to study the right to sell, but to implement it, after the new Korean information technology system (KDX) is launched commercially, massively, the ability to prevent risks. The risk is increased to be feasible.
Mr. Le Hai Tra, Head of HoSE’s Board of Directors, said that the company is implementing a new generation information technology system and applying it to the whole new stock market. This is a huge and complex project related to the entire trading system, information disclosure, clearing, deposit…. With this system, the process of implementation continues to be updated and improved. As planned, at the end of this year, the system will come into operation. Currently, the project is in the testing phase, but the Covid-19 epidemic makes contractors unable to come to Vietnam to support.