Promoting trade links between Vietnam and ASEAN

Training session with the topic "Market analysis methods and building trading ideas" organized by Vietnam Commodity Exchange (MXV) - Photo: VGP/MXV

The event was attended by nearly 200 delegates including experts from around the world, representatives of regional exchanges, investors, brokers, and traders from MXV member companies.

This is also the first time MXV and three leading commodity exchanges in the ASEAN region, namely Singapore Commodity Exchange (SGX), Asia Commodity Marketplace (ACM) from Indonesia and Brusa Malaysia Derivatives (BMD), have gathered and shared practical experiences in commodity trading operations and connecting transactions with the world.

At the training session, MXV Deputy General Director Nguyen Duc Dung said that this training program is an annual event to bring knowledge and practical values ​​of the commodity trading market to businesses and investors in the Vietnamese market.

Mr. Nguyen Duc Dung - Deputy General Director of Vietnam Commodity Exchange (MXV) delivered the opening speech of the training session - Photo: VGP/MXV

Following the success of the training program "Derivatives Portfolio Risk Management" in July 2024, this year MXV continues to implement the training program "Market analysis methods and trading idea development", with more in-depth content to help market members improve their analytical capacity and build effective trading strategies.

Many valuable experiences for investors

Mr. Andy Tan - CEO of Inspirante Trading Solutions (ITS) believes that in commodity trading, a comprehensive approach is needed, combining macro analysis, technical analysis, arbitrage trading strategies and risk management to build an effective commodity trading plan.

Specifically, ITS offers a top-down analysis method (from macro to micro), starting with global economic trends, then delving into specific industries and commodities, focusing on examining important economic indicators such as GDP growth, inflation, monetary policy and geopolitical tensions to predict the impact on the commodity market.

Mr. Andy Tan - CEO of Inspirante Trading Solutions Pte Ltd (ITS) shares about the top-down analysis method - Photo: VGP/MXV

ITS research and analysis experts shared specific and vivid practical examples to help attendees understand the content conveyed.

For example, the silver market, gold and silver are closely related. If the price of gold tends to increase in the long term, it will pull silver along because the raw material is widely used in industrial production, so an economic recession can slow down the demand for silver. However, from the perspective of a safe haven asset, when the price of gold increases, silver will also increase accordingly.

Sharing practical experiences in the process of operating and connecting rubber trading - a product traded on SGX that accounts for 90% of the total open positions of the entire market, Mr. Kenneth Ng - Director, commodity, securities and FICC expert of SGX, said that the average daily trading volume of TSR20 rubber futures on SGX reached about 16,000 lots, reflecting the great demand of investors and manufacturing enterprises.

SGX's provision of TSR20 futures and options helps businesses hedge risks, stabilize production costs and optimize trading strategies.

At the training session, BMD’s Director of Marketing and Retail Customer Development, Ms. Esther Tio, analyzed the characteristics of palm oil contracts for Vietnamese traders. Currently, BMD is the world’s leading palm oil trading center, accounting for 97% of the liquidity of crude palm oil futures (FCPO).

FCPO is traded in 25-ton units per contract, quoted in Malaysian Ringgit (MYR), and traded three times a day including the night session, to meet international demand. FCPO prices often quickly reflect global supply and demand fluctuations, influenced by factors such as export tax policies, weather, fluctuations in the Malaysian Ringgit and demand from China and India.

BMD experts also shared about the crude palm oil delivery process, with full inspection, storage, and delivery systems to ensure quality. These are experiences for countries like Vietnam in the process of building a real goods transaction and delivery system.

ACM Exchange representative, Ms. Cindy Olyvia - ACM Deputy Director of Business introduced Nano Contracts futures contract, with low margin ratio, small transaction size, this product will be more accessible to individual investors than standard metal contracts on the London Stock Exchange.

Currently, ACM is trading Nano Contracts with 3 types of products: platinum, silver and copper. MXV is the first foreign partner of ACM to deploy this type of contract. ACM expects that with the cooperation between ACM - MXV, the number of open positions from MXV will account for about 20% of the total open positions of this Nano Contracts transaction. Thanks to that, MXV can expand the scope of operations and increase the attractiveness of the derivatives market in Vietnam.

According to Vietnam Commodity Exchange (MXV)

Source: https://baochinhphu.vn/thuc-day-lien-ket-giao-dich-hang-hoa-giua-viet-nam-va-asean-102250319162245974.htm