Knowledge
3.3. 5-Year Government Bond Futures Contract Template
| Articles | Details |
|---|---|
| Contract name | 5-Year Government Bond Futures Contract Template |
| Contract code | The Hanoi Stock Exchange (HNX) is responsible for issuing futures contract trading codes, ensuring that the structure of these codes complies with the regulations set by the Vietnam Stock Exchange |
| Underlying asset | 5-year government bond, par value 100,000 dong, nominal interest rate of 5.0% per annum, with interest paid annually at the end of each 12-month period, and principal repaid in a lump sum at maturity |
| Contract multiplier | 10,000 dong |
| Contract size | 1,000,000 dong |
| Listed date | 04/07/2019 |
| Trading method |
Order matching method Put-through method |
| Expiry month | The last three months of the three most recent quarters |
| Trading hours |
Opening: 15 minutes before the stock market Closing: At the same time as the stock market |
| Tick size | 01 dong |
| Trading unit | 01 contract |
| Reference price | The settlement price of the previous trading day or the theoretical price (on the first trading date) |
| Price limit | ± 3% relative to the reference price |
| Order limit | 500 contracts/ order |
| Position limit |
According to the regulations of VSDC: • Professional securities investor: 10,000 contracts |
| Last trading date | On the 15th day of the maturity month, or the preceding trading day if the 15th falls on a holiday |
| Final settlement date | The third business day from the last trading day |
| Settlement method | Underlying asset delivery |
| Method for determining the daily settlement price | According to the regulations of VSDC |
| Method for determining the final settlement price | End-of-day settlement price on the last trading day |
| Standards for deliverable bonds | Government bonds issued by the State Treasury, with a remaining maturity of 3 to 7 years as of the final settlement date, and a minimum listed value of VND 2,000 billion. The conversion factor is calculated based on a nominal interest rate of 5.0% per annum |
| Margin requirement | According to the regulations of VSDC |
(*) Regulations on physical delivery settlement upon maturity
Applicable to Government Bond Futures Contracts.
| Day | Details |
|---|---|
| Day E-1 | The customer must demonstrate payment capability before 4:00 PM: • The Buyer must deposit 100% of the payment based on the par value. • The Seller must deposit 100% of the deliverable bonds. |
| Day E | Last trading date |
| Day E+2 | HSC notifies the customer of the list of allocated deliverable bonds and the payment obligation on the final settlement date |
| Day E+3 |
Final settlement date: * In case of payment default: |