SSI held seminar of "Covered warrants – Anticipating New Opportunity" in 2 regions
In the context of the stock market in the last 6 months of the year, the seminar of "Covered warrants - Anticipating New Opportunity", held by SSI Securities
In the context of the stock market in the last 6 months of the year, the seminar of "Covered warrants - Anticipating New Opportunity", held by SSI Securities Corporation in Hanoi and Ho Chi Minh City, brought a comprehensive picture of the new product Covered Warrant (CW), at the same time bringing the most complete information about the growth prospects of the underlying securities codes issued by SSI warrants to the investors.
On June 6 and June 10, Ho Chi Minh City Stock Exchange (HOSE) and The Hanoi Press held a seminar "Covered warrants - Anticipating New Opportunity”. The program is organized by SSI Securities Corporation, with the participation of leading securities experts at the company: Mr. Nguyen Duy Linh - Deputy Director, Retail Brokerage Division; Ms. Nguyen Thi Thuy Linh - Head of Institutional Research and Investment Advisory Department – Institutional Brokerage Division; Ms. Nguyen Thanh Ny Ny, Mr. Dao Minh Chau and Ms. Tran Thuy Trang - Senior Analyst of Institutional Research and Investment Adviser - Institutional Brokerage Division. In particular, the seminar was attended by Mr. Nguyen Duc Thong - securities derivative transaction director at the SSI Securities Corporation. Mr. Nguyen Duc Thong is the former Deputy Director of Investment Strategy Division of Morgan Stanley, spent 8 years working in the UK stock market before returning to Vietnam and joining the team of SSI Securities Corporation.
Nearly 2 years since the CW was launched, investors are waiting for this new product to be officially put into transaction. With extensive working experience in major stock markets in the world. Mr. Nguyen Duc Thong shared: “CW is a common product on many developed stock markets. Markets with developed CW products such as Taiwan, Thailand, Hong Kong or Korea have a lot of similarities with Vietnam's stock market, such as the large proportion of individual investors participating in transactions, mainly Short-term translation, wishing to use high leverage tools. As a fledgling market, with the participation of more than 99% of individual investors, bringing such high-class structural products to Vietnam's stock market is considered a right and necessary step.” Together with Stocks, Derivative Securities - Futures contracts, the CWs are put into operation to expect not only contribute to perfecting the products and services on the stock market but also help to diversify investment channels, hedging risks in the context of the market in 2019 are expected to have many fluctuations. According to SSI, when the CW product comes into being, it will attract the majority of investors to participate, bring the opportunity for investors to trade with high leverage ratio, low initial capital investment scale, don’t have to pay interest on margin, risk of losses encapsulated in the initial cost.
At the seminar, all questions about warrants were answered by experts in a detailed, completed and easy-to-understand manner, including investment strategies, how to choose warrants, and practice of calculating profits - losses with simple formulas in specific cases, given the market prediction for the last 6 months, how should investors take advantage of CW ...
CWs are products issued by the Securities Company, listed on the stock exchange and have trading activities similar to the underlying securities. CW is always associated with 1 underlying stock to serve as a reference for determining profit / loss. Investors who buy CW can sell when warrants listed on the exchange or hold until maturity. Securities company issued CW must meet certain standards of financial capacity and be licensed by the State Securities Commission. Surveyed the market today, there are no more than 12 securities companies eligible to issue warrants. As the Number 1 securities company in the market, SSI is one of the first 7 securities companies in the market to issue guaranteed warrants, with 6 CW codes based on 4 underlying securities codes, including FPT, MWG, MBB and HPG, with the terms of 3 to 6 months. At the seminar, investors were also given full and comprehensive analysis by SSI leading securities experts about growth prospects of SSI's underlying securities that issuing warrants, the advantages that SSI owns, for investors to have the best choice, to optimize their investments.
In fact, each securities company has its own advantages to attract investors. SSI has an outstanding advantage in retail customer sets, has the Number 1 position in the market share of stock trading ... thus, helping CW products easily reach the customers of SSI. In addition, with a large number of branches, transaction offices all across the country, a large number of well-trained brokers, SSI has favorable conditions to advise customers on CW transactions. The fact that SSI has a large capital scale also creates favorable conditions for the Company to issue a variety of warrants, on a variety of underlying securities codes, with a larger scale, help the company to have a large warehouse to perform many operations later.
The important highlight that SSI is currently implementing is that it requires its brokers to provide thorough advice to investors when starting to join a new product’s transaction, including CW. Because in order for CW investment to be successful, investors need to understand the risks when investing in CW, such as high leverage, high volatility, and CW risk at a loss (Out of The Money) when due.
For securities companies issuing CW, the biggest risk is the underlying securities fluctuations or loss of liquidity, leading to the fact that securities companies cannot hedging in accordance with the SSC's regulations. Therefore, the Risk Management department will continue to warn about liquidity risks and the risks of stock price fluctuations to promptly hedging. In addition, the mechanism of creating warehouses and proprietary trading on underlying securities is also taken into account to limit liquidity risk, increase the flexibility of investment activities, use derivative tool for hedging for fluctuations that are detrimental to the underlying stock warehouse.
According to Mr. Nguyen Duc Thong, for investors to always have the right understanding as well as the right skills to identify the market, ability to choose appropriate investment channels, securities companies need to always clearly show their leading role in the market. “For SSI, CW products will help us increase market share, continue to make SSI a pioneer in launching new products, supporting investors, and optimizing large capital sources that SSI own, becoming more flexible in proprietary trading. ”
As one of the first few securities companies in the market to issue CW products, the seminar of "Covered warrants - Anticipating New Opportunity" continues to show SSI’s goal of conscientiousness, dedication to bringing efficiency, maximizing profit for customers, contributing to the development of Vietnam's stock market, with the vision of "The business of success”.
About SSI Securities Corporation (HOSE: SSI)
SSI Securities Corporation (SSI - HOSE) - established in December 1999 - is one of the pioneer companies at Vietnam stock market. Over 18 years of operation, SSI has become the largest financial institution in the market with a chartered capital of VND 5,100 billion, operating in major financial services including Retail Securities Services, Institutional Securities Services, Asset Management, Investment Banking, and Treasury. In 2018, SSI lie within the list of private and listed securities companies with Top highest scale of capitalization, total assets, profit as well as profitability of ROE in ASEAN region.
On December 18, 2018, the company officially changed its name from "Saigon Securities Incorporation" to the new name "SSI Securities Corporation" - unifying the company name with the abbreviation and stock code issued in the market. This is considered a necessary change, helping investors, especially foreign investors, easily identify the company's brand, in the context that SSI is one of the 40 most valuable brands in Vietnam, valued at USD 30.8 million. On the other hand, showing a professional image, aiming for further and greater development of the company in the future, not only in Vietnam market but also in the region as well as around the world