Derivatives are financial products that derive their values from the price movements of underlying assets. In Vietnam, the first derivative product is futures contracts – Standardized agreements between a seller and a buyer that are executed at current time and will be settled at a specified time in the future.
Index futures contract is a futures contract that has stock index as its underlying asset. Currently, VN30 Index is the only underlying for stock index futures in Vietnam. Futures contracts are listed and traded on the Vietnam Derivatives Exchange (HNX) and settled and cleared through the Clearing House (Vietnam Securities Depository And Clearing Corporation - VSDC).
Contract Specifications for VN30 Index Futures
| Contract | VN30 Index Futures Contract |
| Contract code | VN30FYYMM |
| Underlying | VN30 Index |
| Contract Multipliers | VND100,000 |
| Contract (expiration) months | The closest month, the next month, the closest last month of a quarter, the next last month of a quarter |
| Minimum tick | 0.1 Index point (equivalent to VND10,000) |
| The last trading day | The third Thursday of the contract month |
| Daily settlement price | Following regulations of VSDC |
| Final settlement price | The final settlement price of VN30 Index futures contract is: The simple arithmetic mean of the VN30 Index for the last 30 minutes of the last trading day (including 15 minutes of the Continuous session and 15 minutes of the Closing session), after excluding the 3 highest Index values and the 3 lowest Index values of the Continuous session. FSP is rounded to two decimal places |
| Final settlement day | The next working day of the last trading day |
| Settlement method | Cash |
Government bond futures contract is a futures contract, whose underlying asset is a government bond with five-year maturity term, par value of VND100,000, nominal coupon rate of 5% p.a., annual coupon payment, and bullet principal payment upon maturity. Government bond futures contracts are listed and traded on the Vietnamese Derivative Exchange (HNX) and have clearing processed by Central Counter Party Clearing House (CPP) at the VSDC.
| Contract name | Five-year Government Bond Futures Contract |
| Contract code | GB05Fyymm |
| Underlying asset | Five-year maturity term, par value of VND100,000, nominal coupon rate of 5% p.a., annual coupon payment, and bullet principal payment upon maturity |
| Contract multipliers | VND10,000 |
| Maturity month | 03 last months of the three closest quarters |
| Matching methods | Order matching and put-through |
| Trading hours |
• Opening: 15 minutes ahead of the underlying market • Closing: At the same time of the underlying market |
| Price range | +/-3% against reference price |
| Price tick/ quotation unit | VND1 |
| Trading unit | 1 contract |
| The last trading day (E) | The 15th of the maturity month or the next trading day if the 15th of the maturity month is a statutory holiday. |
| The last payment day | The third business day following the last trading day |
| Settlement method | Physical asset transfer |
| Key features of bonds that can be used to physically settle futures contract |
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| Order limit | 500 contracts per order |