
Six years of derivative stock market: VN30 index futures contract up 27.46% annually

The Hanoi Stock Exchange (HNX) has announced that after six years of operation, the derivative stock market has shown positive and stable growth, with active trading and an increasing number of investors.
Accordingly, the VN30 index futures contract, the first derivatives product traded on the market, has experienced strong growth, averaging an annual increase of 38.65% during the 2018-2022 period. The year 2020 marked the highest growth with 79.9% compared to 2019, and there was an annual 43.8% expansion last year.
In the first seven months of this year, the average trading volume reached 225,178 contracts per session, down 17.41% year-on-year. However, this still ranked as the second-highest average trading volume in a year, only following the record high in 2022.
Over the course of six years, the average growth of VN30 index futures contract transactions has reached 27.46%.
The HNX believed that the derivative stock market has gradually become a risk management tool for investors, given that when the underlying market experiences significant volatility, the trading volume in the derivative stock market increases, whether the volatility is in an upward or downward direction.
The derivative stock market also serves as a profitable investment channel for investors. With the ability to trade in both directions and the possibility of continuous buying and selling within a session, investors can generate profits even when the underlying market experiences sharp declines.
As of July 31, 2023, there were 1,341,152 derivative trading accounts, which was 546 times higher than that in the initial launch of the market.
In July, foreign investors' transactions accounted for 3.47% of the total trading volume across the entire market, compared to 0.1% in late 2017.
Last year, the trading volume of foreign institutional investors reached nearly 2.1 million contracts, which was approximately five times higher than that by foreign individuals.
From the initial seven member securities companies when the market was first launched, there are now 24 ones. Each of them has a minimum charter capital and owner's equity of at least 900 billion VND (39.1 billion USD)./.
VNA
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