The Ha Noi Stock Exchange (HNX) will organise a pilot trading session on Wednesday to test and demonstrate the trading system of the derivatives market.

The pilot trading session, based on co-operation between HNX and Sai Gon Securities Inc, will be watched by reporters and journalists.

Earlier this month, HNX vice general director Nguyen Thi Hoang Lan said the derivatives market would operate in August and all preparations for the market had been completed.

The first derivatives product to be launched is the VN30 Index futures contract. Later products include the HNX30 Index and five-year Government bond futures contracts.

The VN30 and HNX30 indices track the performance of the 30 largest stocks on the HCM and Ha Noi stock exchanges.

The HNX in May and June approved market trading membership for six brokerages, including Sai Gon Securities, HCM City Securities, Viet Capital Securities and VPBank Securities, and connected the system with these brokerages.

The most important factor for the derivatives market is margin lending. The term “margin lending” for derivatives products is different from that for common stocks.

On the common stock market, margin lending means an investor must deposit the targeted stock with the brokerage company to make a loan to purchase the targeted stock.

In the derivatives market, an investor must make the deposit to the brokerage company to exchange future contracts and settle their daily trading activities. — VNS