Knowledge
3.4. 10-Year Government Bond Futures Contract Template
| Articles | Details |
|---|---|
| Contract name | 10-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 | A 10-year government bond with a par value of VND 100,000, a 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 | 28/06/2021 |
| 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 | 1 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: • Institutional professional securities investor: 10,000 contracts |
| Last trading date | On the 25th day of the maturity month, or the preceding trading day if the 25th 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 interest paid periodically at the end of every 12-month period in equal installments, and the principal repaid in a lump sum at maturity. The bonds must have a remaining maturity of 8 to 11 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. |
| 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: The customer is responsible for compensating the counterparty with an amount calculated using the following formula: Compensation value = 5% x FSP x Contract multiplier x Number of contracts |
