Vietnam Daily News

Vietnam Bond Market to Have Market Makers

Written by Dailynews.vn Wednesday, 14 December 2011 17:16

Vietcombank, HSBC, ANZ, Standard Chartered, Techcombank, BNP Paribas and Maritime Bank signed a memorandum to become experimental market makers in the local bond market from January, 2012.

At the annual meeting of Vietnam Bond Market Association (VBMA) on December 9, BIDV, Vietcombank, HSBC, ANZ, Standard Chartered, Techcombank, BNP Paribas and Maritime Bank signed a memorandum to become experimental market makers in the local bond market from January, 2012, the local online newspaper Saigon Tiep Thi reported.

Market makers will help to increase the transparency, boost liquidity and efficiency for the bond market, and provide reliable market interest rate curves, said Do Ngoc Quynh, general Secretary of VBMA.

Vietcombank, Vietinbank, BIDV and Saigon Securities Inc. (SSI) will also pilot a standard model in managing bond trading businesses in the near future.

Besides, VBMA suggested the State Bank of Vietnam allow VBMA to engage in developing VNIBOR Index in the interbank market. The association has also been reviewing plan to establish a credit rating agency in Vietnam.

Vietnam bond market is still at its early development, staying at 16-17 percent of GDP. In 2011, total trading volume of government bonds surpassed VND73 trillion, lower than VND81 trillion in 2010.

Source: www.intellasia.net/news/articles/stock_market/111350708.shtml