KB Securities Vietnam (KBSV) has officially become the 13th derivative trading member of Hanoi Stock Exchange (HNX). Mr. Nguyen Duc Hoan, CEO of KBSV affirmed that joining after another securities companies in certain aspects is the advantage of KBSV.
Joining in derivatives market when some leading securities companies have operated stably, is KBSV under pressure?
As a later participant in the derivative market, we are aware of the difficulties in the process of system operation, product design and customer network building in the context of other securities companies have been operating for a while and went into stability.
However, on the contrary, later deployment is also somewhat advantageous. Through researching the positive and negative sides of securities companies that have implemented derivative products early, we have been able to get some experience and directions to make a difference when KBSV will officially launch derivative products in the near future.
Mr. Nguyen Duc Hoan - CEO KBSV affirmed that joining after another securities companies in certain aspects is the advantage of KBSV.
What strategies does KBSV have in securing derivatives market share?
Basically, our strategy will still focus on three main directions: Firstly, to strongly develop systems and technological infrastructure to create convenience and safety in transactions and payments for investors; Secondly, improve the quality of the team of investment advisors, and brokers, always follow the market and make timely recommendations in the current volatile financial market; Third, providing product packages suitable, with preferential and competitive fees compared to other securities companies in the market.
As a young company, similar to the underlying market, KBSV's first priority is to quickly increase our market share in the derivatives market through optimizing the interests of its customers.
Although derivatives trading activities are quite active, they still focus on domestic individual investors and there are still many institutional investors, especially foreign investors. Do you think this is a great space for KBSV to exploit this segment of customers?
The fact that the majority of trading value on derivatives market comes from individual investors is due to the lack of diversified derivative products, as well as the trading value is not large enough, making investment funds, especially foreign funds that have not participated yet. Thus, it can be said that the above situation stems from systematic causes and it is difficult for any securities company to change in a short time.
However, as a foreign securities company with certain advantages in approaching foreign institutional investors, we will endeavor to promote the exploitation of this customer segment, especially in the context that KBSV believes that the growth potential of Vietnam derivatives market is huge and the proportion of foreign organizations' transactions will increase over time.
After more than 2 years of implementation, the derivatives market has grown significantly in value, trading volume and number of contracts. How do you assess the prospects of the derivatives market in the near future?
Historical statistics have shown a sharp increase in trading value in Vietnam derivatives market in the past 2 years, along with the booming of the derivatives market in countries in the region. This partly shows the development potential of derivative market in Vietnam in the future is huge.
However, the speed of development will depend on the system connectivity, the transparency associated with investor confidence and the deployment of a variety of new products to meet both the investment needs: profit and hedging. Over time, these factors may gradually improve and the development of Vietnam derivatives market in the long term is inevitable.
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