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VIETNAM - Regulators learn new derivatives techniques
Following the successful series of trainings on derivates for the members of the Vietnam Securities Business Association in 2019, the Capacity Building in the Financial Sector Project VIE/032 has started the year 2020 with another course on derivates for regulators from the State Securities Commission, Hanoi Stock Exchange and Vietnam Securities Depository, which took place between 24-27 February. The training was commended by the 50 participants who enhanced their knowledge on derivatives and the derivatives market. They notably appreciated the opportunity to gain broader knowledge and new practical techniques delivered by a recognized and experienced trainer, with the support from Luxembourg.
The training course, while covering types of contracts, systematic risk and portfolio management, introduced a number of real-life examples and exercises that taught trainees how to avoid common mistakes and pitfalls. While recapping parts of notions of derivatives and types of contracts, the success of this course stemmed from the fact that the trainer dug into core issues and focused on “critical things to remember”, making sure participants master a variety of aspects and handle derivatives without difficulties.
A survey carried out after the completion of the four-day training workshop showed that 82% of trainees found the practical lessons to be most interesting, while the usefulness of the course was rated highly by all.
It is absolutely what I expected to learn: Various sophisticated topics explained in an easy-to-understand language. I find it very useful for my work now and for the future.
Ms. Van Nguyen, Vietnam Securities Depository.
Meanwhile, from the perspective of a regulator from the SSC, Mr. Anh Nguyen stated that he was happy that he had the opportunity to put himself in the seat of a trader in an exercise, as it helped him to see things from a different point of view.
More than two years on since being established in Vietnam, derivatives and the derivatives market still remain a big challenge for stakeholders in such a newly developing market. In order to boost the market, it requires the active involvement and exchange between qualified professionals, from regulators acting as instructors and facilitators, to product developers at stock exchanges, bankers as brokers or traders or intermediaries, and investors. As elsewhere, authorities aim to operate the derivatives market as a channel for risk reduction and redistribution on the ground of underlying market and as a price stabilizer.
Further exchanges with participants reveal that they want to take further, more advanced courses on derivatives, in addition to other subjects such as risk management, bonds and bond products, fintech and corporate governance. “We are very grateful to have received technical support from Luxembourg in courses such as these, where many people are exposed to Luxembourg’s advanced knowhow on stocks” said Mr. Dzung Vu Chi, Director General of the SSC’s Department of International Cooperation.
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