VN100 Index Futures expected to debut in Vietnam next month

After a period of thorough preparation and successful testing, the VN100 Index Futures Contract is scheduled to be officially launched and available for trading in Vietnam in October.

VN100 Index Futures will be the second equity index-based derivative product on Vietnam’s derivatives market.

The contract is designed with trading and settlement mechanisms similar to the VN30 Index Futures, which has been operating for the past eight years. This approach ensures ease of access and familiarity for investors.

The key distinction lies in the underlying asset. While the VN30 Index was selected as the underlying asset back in 2017 to match the market conditions at the time, the current development of Vietnam's stock market now calls for the introduction of derivatives based on broader indices. This aligns with the roadmap for product diversification in the derivatives market.

The VN100 Index Futures offers strong market representation, covering over 95% of the VNAllshare’s market capitalization. Moreover, the top 10 stocks account for only 47.62% of the VN100 basket, indicating a relatively balanced composition without excessive concentration.

The index combines stocks from both the VN30 and top-tier VNMidcap, capturing the strengths of both segments - robust growth, high liquidity, strong representation, and diversification. This makes it consistent with recommendations from international organizations on index composition.

In terms of preparation, the VN100 Index Futures has already been designed and submitted for regulatory approval. Key institutions such as the Vietnam Stock Exchange and the Vietnam Securities Depository and Clearing Corporation (VSDC) began disclosing information about the product as early as 2024.

On the testing front, the Hanoi Stock Exchange (HNX) and VSDC have coordinated comprehensive system tests involving all market participants, including derivatives members and clearing banks. The results have been positive, with the infrastructure now fully ready for launch in October.

The introduction of this new derivative product will further diversify the offerings on the Vietnamese derivatives market, providing investors with more options. It also aligns with the roadmap for product development on the stock market through 2025, as part of Vietnam's Securities Market Development Strategy toward 2030.

Vietnam’s benchmark VN-Index closed Friday at 1.667.26 points, up 0.57% from the reference level.