LV thạc sỹ_Strengthening the development of financial derivatives market in vietnam

NATIONAL ECONOMICS UNIVERSITY
ADVANCED EDUCATIONAL PROGRAM
*****************************

BACHELOR’S THESIS IN FINANCE

STRENGTHENING THE
DEVELOPMENT OF FINANCIAL
DERIVATIVES MARKET IN VIETNAM

Student’s name

: ….

Hanoi,


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TABLE OF CONTENTS
NATIONAL ECONOMICS UNIVERSITY..........................................................................1
ADVANCED EDUCATIONAL PROGRAM........................................................................1
CHAPTER 4 CONCLUSION..............................................................................................51


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ABSTRACT
Since the global crisis in 2007-2008, economists have argued about reasons of
the economic downturn, including the usage of financial derivatives. The using of
financial derivatives is controversial even in developed countries such as the US or

Europe. Therefore, it is easy to understand that applying derivatives instrument,
especially financial derivatives is facing many in emerging countries such as
Vietnam. However, financial derivatives already have a long development process
in the world and they are proved to be effective and beneficial for financial
institutions, investors and the economy as a whole. Therefore, the question is not
about applying the instruments or not but how to apply and reduce the risk coming
along. Having a thorough understanding about financial derivatives is a compulsory
stage which will build up the development of these instruments in the financial
market of Vietnam.
The research has three main parts, including:
-

Theoretical background on financial derivatives market

-

Current situation of financial derivatives market in Vietnam

-

Recommendations for the development of financial derivatives market in

Vietnam


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ABBREVIATION
ACB

A Chau Commercial Bank

BIDV

Bank of Investment and Development of Vietnam

SBV

State Bank of Vietnam

VND

Vietnam Dong


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LIST OF TABLES
NATIONAL ECONOMICS UNIVERSITY..........................................................................1
ADVANCED EDUCATIONAL PROGRAM........................................................................1
CHAPTER 4 CONCLUSION..............................................................................................51

LIST OF CHART
NATIONAL ECONOMICS UNIVERSITY..........................................................................1
ADVANCED EDUCATIONAL PROGRAM........................................................................1
CHAPTER 4 CONCLUSION..............................................................................................51


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CHAPTER 1: INTRODUCTION
1.1 RATIONALE
Strong financial system is a compulsory factor in order for a country to
achieve sustainably economic development. In the case of Hong Kong and
Singapore, stable financial system is the key to push the economy and protect it
from fluctuations of global events.
In Vietnam, the financial system is still in weak form. Uncertainties of the
economy such as changes of interest rates, exchange rates, gold prices…can easily
affect our banking system and then, manufacturers. Under pressure of improving
and modernizing financial activities, developing a derivatives market is in
discussion for many times, especially after the global financial crisis in 2007.


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However, until now, Vietnam is still not having an official derivatives market and
lacking many supporting conditionsfactors to build up this market.
Initially, the research was aimed at understanding derivatives instruments, its
their role in the financial and economic system. However, because of time
constraint, this study focuses only on financial derivatives instruments. They are
now already established as products of some commercial banks in Vietnam.
Nonetheless, the understanding of organizations and individuals about their
characteristics and usefulness is still limited and the application is still having
shortcomings. is problematic.
The research will identify characteristics and usefulness of financial
derivatives instruments which are currently in use in Vietnam market. Moreover, the
situation of derivatives trading in Vietnam also is analyzed.

Finally, the

recommendations will be concluded with some references from other markets such
as China and Korea.

1.2 RESEARCH OBJECTIVES
The study aims at adding one useful reference for further study and research
about the market of financial derivatives market in Vietnam. There are three main
objectives for the research, including as below:. The research will have to provide
readers a thorough view about the bellowed aspects:
- Providing Fundamental Basic but full understandings of the financial
derivatives market and its related contents.
- Analyzing the Ccurrent situation of the development of the financial
derivatives market in Vietnam
- Suggesting rRecommendations for the strong and sustainable development
of Vietnam’s financial derivatives market.

1.3 RESEARCH METHODOLOGY
The study mostly uses the secondary sources of data and information. Tha is to
say That means the research contains references from some published books,
articles, and news… Moreover, there are also information and data coming from


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Vietnam commercial banks’ financial statements. The data is useful to analysis the
current situation of the financial derivatives market in Vietnam

1.4 SCOPE OF RESEARCH
The research focuses on the financial derivatives market in Vietnam.
Nonetheless, because of time constraints, it can not provide a detailed and deep
analysis about all the aspects involving. The research targets Vietnam commercial

banks to mostly investigate the current situation of the market since it is not difficult
to collect the data of these banks; and it provides the quantitative evidences for the
research.

CHAPTER 2: THEORETICAL BACKGROUND ON
FINANCIAL DERIVATIVES MARKET
2.1 Financial Derivatives
2.1.1Definition
A derivative is a contract with seller and buyer. The value of each contract
depends on the price of other assets that we call “underlying assets” which are
subject to changing market prices.
Unlike debt instruments, no principal amount is advanced to be repaid and no
investment income accrues. Derivatives are also totally different from securities.
They are financial instruments that are mainly used to protect against and manage
risks, and very often also serve arbitrage or investment purposes, providing various
advantages compared to securities. Moreover, the time between entering into the
contract and the ultimate fulfillment or termination of the contract, can be very


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long- in some cases more than ten years. While Whereas, transactions of securities
are fulfilled within a few days.
Derivatives come in many varieties and can be differentiated by how they are
traded, the underlying they refer to, and the product type:
- Type of derivative and market place: Derivatives contracts could be traded
on the counter (OTC) with mostly individually customized contracts or on exchange
with standardized contracts.
- - Type of underlying assets: Underlying assets include financial assets and
commodity asset. Respectively with each kind of underlying assets, there are

financial derivatives and commodity derivatives.
- Type of products: The four main types are forwards, futures, options and
swaps.
Financial derivatives are financial instruments that are linked to a specific
financial instrument or indicator or commodity price such as stock price, foreign
currencies, and interest rate, gold prices… through which specific financial risks
can be traded in financial markets in their own right. Because of the research scope,
the study is only focused on financial derivatives, but not commodity derivatives.

2.1.2 Uses and users of financial derivatives
Financial derivatives can be used with different objectives:
Risk management or Hedging: derivatives are a tool for companies and other
uses to reduce risks. Financial derivatives help to eliminate uncertainty by
exchanging market risks, commonly known as hedging. Firms and financial
institutions use financial derivatives to protect themselves against changes in
exchange rates, interest rates, securities prices…These users would be called
hedgers.
Investment: Derivatives can serve as investment vehicles. Derivatives are an
alternative for investors to investing directly in assets without buying and holding
the asset itself.


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Reduced transaction costs: sometimes derivatives provide a lower cost way
to effect a particular financial transaction. The total transaction cost of buying a
derivatives contract on a major European stock index is about 60 percent lower than
that of buying a portfolio of underlying assets.
Speculation: Derivatives also allow investors to take positions against the
market if they expect the underlying asset to fall in value. Typically, investors

would enter into financial derivatives contract to sell an asset that they believe is
overvalued, at a specified future point in time and to buy an asset that they believe
is undervalued. Such strategies reduce the risk of assets becoming excessively
under- or overvalued.
Because financial derivatives are new in the investment world and it is not
easy to understand the characteristics and strategy to use derivatives, these contracts
are mainly designed for professional users. Moreover, some financial constraints,
for example: the cost or the floor value of a contract would explain for the fact that
the lead the instruments are more appropriate for professional users.

2.1.3Benefits and risks of financial derivatives
2.1.3.1 Benefits:
Financial derivatives instruments are innovative and effective financial
products which are proved to have many advantages, including:
- Providinge risk protection with minimal upfront investment and capital
consumption.
- Allowing investors to trade on future price expectations
- Havinge very low total transaction costs compared to investing directly in the
underlying assets.
- Allowing fast product innovation because new contracts can be introduced
rapidly.
- Getting Can be tailored to the specific needs of any user.
2.1.3.2 Risks:


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A number of risks are posed by the financial derivatives markets. They may be
classified into two categories:
- (i) Firm-specific risks

- (ii) Systematic risks that threaten both the financial system and the real
sector.
The risks at the level of the individual firm include credit or default
risk, legal risk, market and liquidity risk, and operating or management risk.
Systematic risk is linked to the greater competition between banks and nonbank financial institutions, greater interconnectedness of financial markets,
increasing concentration of derivatives trading, the reduced disclosure of
financial information through off-balance sheet activities, and financial and
telecommunication innovations that have intensified reactions to market
disturbances.


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2.2. Different types of

financial derivatives products
2.2.1
Forwards
A forward contract is a contract that sets today the terms at which you
purchase or sell an asset or commodity at a specific time in the future. A forward
contract does the following:
•Specifies the quantity and exact types of the asset or commodity the seller
must deliver
•Specifies delivery logistics, such as time, date and place
•Specified the price the buyer will pay at the time of delivery
•Obligates the seller to sell and the buyer to buy, subject to the above
specifications.
The time at which the contract settles is called the expiration date. The asset or
commodity on which the forward contract is based is called the underlying asset. A
forward contract requires no initial payment or premium. The contractual forward

price simply represents the price at which consenting adults agree today to transact
in the future, at which time the buyer pays the seller the forward price and the seller
delivers the assets.
The payoff to a contract is the value of the position at expiration.


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The payoff from a long position (when an investor buys the contract, it says he
is in a long position) in a forward contract is
P=S-X
Where S is a spot price of the security at time of contract maturity, X is the
delivery price. Similarly, the payoff from a short position (when an investor sells a
contract, it says he is in a short position) is
P=X-S
Any forward or futures contract-indeed, any derivatives contract- has credit
risk., which mean there is a possibility that the counterparty who owes money fails
to make a payment.

2.2.2. Futures
As with forwards, futures contracts represent a commitment to buy or sell an
underlying asset at some future date. Because futures are exchange-traded, they are
standardized and have specified delivery dates, locations, and procedures.
Although forwards and futures are similar in many respects, there are
differences:
- Whereas forward contracts are settled at expiration, futures contracts are
settled daily. The determination of who owes what to whom is called marking-to-


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market. Frequent marking-to-market and settlement of a future contract can lead to
pricing differences between the futures and an otherwise identical forward.
- As a result of daily settlement, futures contracts are liquid-it is possible to
offset an obligation on a given date by entering into the opposite position.
- Over-the-counter forward contracts can be customized to suit the buyer or
seller, whereas futures contracts are standardized.
- Because of daily settlement, the nature of credit risk is different with the
futures contract. In fact, futures contracts are structured so as to minimize the
effects of credit risk.
There are typically daily price limits in futures markets. A price limit is a
move in the futures price that triggers a temporary halt in trading.
To sum up, a future contract is equivalent to a forward contract that is settled
daily or “market-to-market” and written simultaneously as a new forward contract.

2.2.3Options
An option contract gives the purchaser the right, but not the obligation, to buy
or sell at or within a certain point in time in the future at a pre-determined price.
Options are categorized into two different kinds: call option and put option.
Call option: a call option is a contract where the buyer has the right to buy,
but not the obligation to buy.
At the time the buyer and seller agree to the contract, the buyer must pay the
seller an initial price, or premium. This initial payment compensates the seller for
being at a disadvantage at expiration. Contrast this with a forward contract, for
which the initial premium is zero.
Option terminology:
- Strike price: the strike price, or exercise price, of a call option is the act of
paying the strike price to receive the asset.
- Exercise: the exercise of a call option is the act of paying the strike price to
receive the asset

- Expiration: the expiration of the option is the date by which the option must
either be exercised or it becomes worthless.


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- Exercise style: the exercise style of the option governs the time at which
exercise can occur. In an European-style option, exercise could occur only at
expiration. In an American-style option, the buyer has the right to exercise at any
time during the life of the option. If the buyer can only exercise during specified
periods, but not for the entire life of the option, the option is a Bermudan-style
option.
Put option: a put option is a contract where the seller has the right to sell, but
not the obligation.
A put must have a premium for the same reason a call has a premium.
Other terminology for a put option is the same as for a call option, with the
obvious change that “buy” becomes “sell”.


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If S is a final price of the option underlying security, X is a strike price and OP
is an option price, than the profit is
Long Call: P = S - X - OP
Short Call: P = X - S + OP
Long Put: P = X - S - OP
Short Put: P = S - X + OP

2.2.4. Swaps

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A swap is a contract calling for an exchange of payments over time. One party
makes a payment to the other depending upon whether a price turns out to be
greater or less than a reference price that is specified in the swap contract. A swap
thus provides a means to hedge a stream of risky payments.
The two most widely used types of swap are interest rate and currency swap.
A company may swap a floating rate of interest for a fixed rate, or vice versa.
For example, a company might ideally want to borrow in the fixed rate market, but
finds it cannot do so at any reasonable rate. It might therefore take out a floating
rate loan, and enter into a swap contract under which it pays amounts equivalent to
fixed rate interest on a notional principal sum, and receives amount equivalent to
floating rate interest on the same notional principal. The net effect is the same as if
it had borrowed at a fixed rate of interest .
Currency swaps are indeed sometimes referred to as cross-currency interest
rate swaps.
Under a currency swap, the parties exchange ‘interest’ payments on a principal
amount denominated in one currency for ‘interest’ on a principal amount
denominated in a second currency. Unlike interest rate swaps, however, the
principal amounts are actually exchanged at the end of the swap period, at an
exchange rate agreed in the contract.

2.3 Financial derivatives market
2.3.1. Definition of financial derivatives market
The term “financial derivatives market” is generally understood as a market in
which financial derivatives products are traded.
Derivative contracts can either be traded in a public venue such as a
derivatives exchange, or privately over-the-counter (OTC). While derivatives were
initially mostly traded in public venues, today the bulk of derivatives contracts is

traded OTC (roughly 85% of the global market in terms of notional amounts
outstanding)
Comparison of Exchange & Over-the-Counter Trades of Financial Derivatives


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Category
Trade

Exchange trade
Trade unit, settlement conditions, etc. are

Conditions standardized.

Trade
Location

Trading
Parties
Deal
Counterpart

Over-the-counter trade
Tailor-made, decided through
discussions between trading
parties
Contracts are mostly concluded

Exchanges

via phone, etc. through dealers or
brokers.

Trading is allowed only for exchange
members.

No limits

Others trade through the members.
Exchanges
Daily settlement. In most cases, only the

Settlement balance is settled before maturity through
offsetting transaction.

Buyers, sellers, and/or their
agents of the deal
In most cases, goods are
delivered or transferred at
maturity.
Dealers and brokers set credit

Deposit

Deposit at exchange

limits per customer or demand
deposits

2.3.2. Derivatives trading in the financial derivatives markets:
Whether a derivative contract is standardized or tailor-made determines how
the market has structured the delivery of trade and post-trade chain functions:
- Trade execution: Trade execution occurs when two counterparties agree to a
transaction. On-exchange, orders are matched automatically on derivative
exchanges' order books. OTC execution may take a variety of forms, depending on
contracts' standardization and market preference, e.g. occurring by phone or
electronically on "private" exchanges. Electronic trading has increased rapidly in
recent years, driven in part by the advent of hedge funds.


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- Trade confirmation: After the execution, the terms of the trade need to
verified (affirmation) and confirmed. On-exchange, this occurs automatically within
the exchange's matching system. As regards OTC, the most standardized OTC
contracts use electronic affirmation and confirmation third-party services.
- Clearing: Contrary to equity markets, where the post-trade aspects (e.g.
exchange of cash and transfer of ownership) are completed quickly (less than 2/3
days), derivative contracts involve long-term exposure, as derivative contracts may
last for several years. This leads to the build-up of huge claims between
counterparties, with of course the risk of a counterparty defaulting. Clearing is the
function by which these risks are managed overtime. On-exchange, clearing is done
on a Central Counter-party (CCP). OTC, clearing is mostly done bilaterally between
the parties involved but increasingly on a CCP.
The central counterparty (CCP)

A

clearing

fund

is

usually

A CCP acts as a buyer to all sellers established as a further line of defense. If
and a seller to all buyers. As the CCP the aforementioned two arrangements
assumes the counterparty risk of all (automatic liquidation of open positions
trading parties it must protect itself so and

collateralization)

are

still

not

that it can always fulfill its obligations. sufficient to honor obligations to other
Different lines of defense are commonly trading parties when one trading party
established

to

achieve

this:

daily defaults, these obligations are fulfilled

compensation of losses (and gains), from this fund. All trading parties must
liquidation of open positions when a contribute to the clearing fund and often
trading

party

is

in

default, even replenishment requirements exist.

collateralization of maximum expected
daily losses, a clearing fund, support

A further line of defense can be a

from a highly rated guarantor and finally guarantee from a highly rated credit
the clearing house’s equity capital.

insurer or bank that steps in if the CCP
runs low on funds.

The daily compensation of all

Finally, if even the clearing fund

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losses and gains by the trading parties arrangement or guarantees are not
ensures that no trading party runs up sufficient to cover the losses from failing
losses over the life of its contracts that it trading parties the clearing house’s
cannot cover in the end. If a trading equity capital serves as a last line of
party cannot compensate its losses defense. Combinations of these lines of
during or after a trading session all its defense make it almost impossible for
contracts can be automatically closed out the CCP to default, thereby eliminating
by entering offsetting contracts.

counterparty risk for all trading parties.

If a trading party defaults, all its CCPs

usually

have

open positions are liquidated to prevent creditworthiness
the defaulting trading party potentially addition,

by

in

the

the

highest

market.

In

being integrated with

running up further losses. Collateral, exchanges’ trading processes, manual
which is pledged to the clearing house, errors or errors from the delayed
serves to cover any losses that cannot be handling of trade confirmations can be
compensated by the trading party. The avoided or at least minimized.
amount of collateral is based on the net
market risk the trading party is exposed
to from all its open contracts. For this,
the CCP must regularly calculate the
market risk resulting from each trading
party’s position.

2.3.3. Requirements to have a esound derivative market
Financial derivative instruments are very effective for users in many using
purposes. However, they also contain many risks and difficulties based on their
complex nature. Therefore, building an effective and transparent financial derivative
market is very important in order to improve the advantages of the instruments.
There are some requirements to have a sound derivative market. They are
stated as below:s


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First, there should be an efficient, liquid, and integrated cash market (either for
bonds, equities, other assets, or commodities) that is broadly market determined
rather than driven by administered prices. Restrictions can lead to less efficient
market. Moreover, modern IT, trading platforms, and internet trading often enhance
liquidity.
There needs to be a compelling economic rationale to develop new derivative
products.
Prior to trading of derivatives, both long and short positions should be allowed
in the underlying cash market.
Market participants that intend to deal in derivatives should be licensed and
trained. They should be required to follow best practice governance and accounting
standards and to hold sufficient capital for their respective risk positions. Also,
intermediaries must be accountable to deal only with fit and proper clients who
understand characteristics and risks of derivatives.
Tax regulations should provide a level playing field for all cash and
derivatives trading. If any one segment is exempted from taxes, it may initially help
market development, but will not be sustainable if that market becomes a substitute
for tax arbitrage reasons. Typically, capital gain taxes are considered more efficient
and less distortionary than transaction taxes.
The major institutional setup of a derivatives exchange will ideally be
implemented through a single demutualized exchange. Typically, index futures are
among the first products before options on individual assets are introduced. Safety
cushions of the exchange must include appropriate capital and a sound margining
system.
Clearing and settlement of derivatives products should be executed through a
single counterparty (CCP) with multilateral multi-product close-out netting
arrangements. Typically the exchange or its subsidiary will provide these services,
which may also cover OTC trading as it will further strengthen the prevalent OTC
design of bilateral ISDA master agreements.

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Local accounting standards should be upgraded to IFRS, including mark-tomarket principles as required under IAS39. Full disclosure of all derivative
positions should be required.
Subsequently, more tailored or innovative OTC derivative products may be
designed, such as credit default swaps. Typically, intermediaries are banks which
should receive specific regulatory clearance and should support their risk positions
with adequate capital.
Finally, the investor base may be further broadened, for example by attracting
a larger share of foreign institutional investors or by opening up new ETD markets
for retail investors. This can be facilitated by strategic partnerships among
exchanges, modern trading platforms, and reduced transaction costs, as well as by
innovative products that meet new hedging needs.

(Source: Chapter for Asian Financial Market Development, the World Bank)


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In summary, solid product design, strong regulation, and sound market
infrastructure are three key components for the development of sound derivative
markets.

2.4 Global derivatives market
2.4.1Overview:
The derivatives market can be described as highly dynamic with plenty of
market entries. There are no legal, regulatory or structural barriers to enter the
derivatives market. Almost all derivatives exchanges across the world have been
created during the last three decades only.

The United States was home to the first wave of equity options exchange
foundations in the 1970s with a lot of new knowledge related to options valuation
and the introduction of computer system. A second wave of new derivatives
exchanges occurred in the 1980s and early 1990s in Europe. During that time, a
financial derivatives exchange was established in almost every major Western
European financial market. Most of these organizations formed their own clearing
houses. In such a dynamic market, the already large number of derivatives
exchanges is likely continue growing.
In emerging markets, activities related to financial derivatives are also
intensive. Three derivatives operations have commenced trading in the Middle East
since 2005: Dubai Gold Exchange, Kuwait Stock Exchange, and IMEX Quatar.
India saw four new derivatives exchanges set up between 2000 and 2003: National
Stock Exchange of India, Bombay Stock Exchange, MCX India, and NCDEX India.
China has seen the establishment of two derivatives exchanges since 2005:
Shanghai Futures Exchange and China Financial Futures Exchange.
Below are experiences from Korea and China. The two markets contain some
similarities as Vietnam and can provide the development of financial derivative
markets in Vietnam some useful lessons:

2.4.2Korean Futures and option market


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South Korean economy is an industrial economy. In the ten years since 1995,
the trading activity on the Korean Stock Exchange, KSE, has led to huge increases
in trading of derivatives. Since the KSE launched futures, Kospi 200 Index, in May
1996 and options on the stock index in July 1997, the traded volume has increased
significantly, creating huge liquidity. The options contract now ranks as one of the
world’s biggest listed derivatives, measured in both volume and value. Just eight

years after the debut of these markets, the average daily volume was 210,000
futures and 11,500,000 options.
There are several key factors to be considered for this degree of success of
derivative markets in Korea:
First, the root cause is the entry of households into the market. Trading in the
financial market is now part of modern Korean culture, and there is a widespread
knowledge of the fundamental mechanisms of the futures and options especially
after the financial crisis in the late 1990s. Individual investors account for twothirds of overall trading volume. At any time during day or night, there are
educational programs on the television about technical analysis and strategy for
stocks and derivatives. Trading the market is part of the daily life of the people in
Korea.
Second key factor is the small size of these contracts. The participate of
household could be the motivation of this characteristic. In mid- October 2002, the
value of a single futures contract on the Kospi 200 was approximately 42.5 million
won, which at the then exchange rate was equivalent to $ 34,000, making it roughly
comparable in size o the E-mini S&P 500. The options contract is even smaller,
representing one-fifth of the value of the futures contract.
The third key factor is the formidable penetration of the Internet in Korean
society, which has allowed online trading to develop very rapidly since 1999. The
number of people with Internet access rose from 1.6 million in 1997 to 10.9 million
in 1999 to 24.4 million in 2001. The ratio of online securities trading to total
securities trading has followed similar pattern, moving from 1.9% in 1998 to 19%


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in 1999, 46.6% in 2000, and 52.3% in 2001. These figures make Korea the world
leader in online securities trading. The low transaction cost is considered to be one
reason for the popularity of online trading in Korea.

2.4.3 China futures and option market
Chinese government started to develop the Chinese financial market from late1990s. China’s spot and futures markets have been developing since the 1980s, in
tandem with the market reforms and the liberalization of the country’s economy.
China Securities Regulatory Commission (CSRS) is the sole national securities
regulatory body. It was mandated in October 1992 to regulate all of China’s
securities and futures markets. Unlike the stock exchanges of most countries,
Chinese stock exchange is a branch of the government.
In 1995, due to the weak risk management procedures, there was a scandal
involving chaotic trading of bond futures contracts in Shanghai Stock Exchange.
Then, the government shut down the bond futures markets and scaled back trading
in commodity futures. Therefore, no financial derivatives have been permitted
since, although there is in mid-2000s discussion of a possible index futures contract.
There are several factors to be discussed regarding the failure of bond futures and
subsequent restriction on the introduction of financial futures. Mostly, China’s
futures markets are closed to foreign investors and brokerage firms. Moreover,
Chinese futures companies, which number around 200 or so, serve primarily as
agents, and are not involved in broader business dealings. Stock and fund
brokerages cannot currently participate in futures transactions. In December 2001,
China Securities Regulatory Commission announced that Shanghai Futures
Exchange was preparing to launch stock index futures. However, there was no
timeframe in the announcement.
To avoid a repeat of the events in the mid-1990s, China will have to develop a
stable regulatory system for its futures market backed up by strong enforcement.
Nonetheless, there are other barriers to reintroduce financial futures market in
China. They are including: the lack of understandings the significance and