The Ha Noi Stock Exchange (HNX) is researching and developing derivative products which depend not only on indices but also on single stocks.

With the potential development, HNX will research and implement the commodity derivative market, focusing on agricultural products which are Vietnamese key products like coffee, pepper, cashew nuts and raw materials including gas, natural gas and oil, HNX said.

HNX will develop the market into a place to provide hedging tools and an investment channel for investors.

The exchange is trying to diversify products that depend not only on indices but also on single stocks, and is looking for solutions to promote diversification of the investor base and develop the institutional investor system.

The appearance of the derivatives market contributes to the completion of the HNX's market structure and the completion of the Vietnamese stock market operational structure according to international practices.

The derivative market has grown beyond expectations, attracting the attention of domestic and foreign investors, HNX said.

Although it has only been in operation for more than four years, the liquidity is quite high, the average trading volume is more than 205,098 contracts a session in the first nine months of 2021.

It recorded a session with a trading volume of up to 403,266 contracts, a number that many developed markets in the region took decades to achieve.

The derivatives market has shown its role as a hedging tool for investors in the underlying market, maintaining capital flows in the market at the time when the market declines sharply and attracting foreign investors, especially institutional investors. — VNS