With the mission to promote and to foster the Vietnam Financial market in general and Vietnam Bond market in particular, VBMA and the Members agree to co-operate in implementing the Market Maker Agreement for USD/VND interest rate swap (MMA for FX Swap) from September 16, 2021.

There are 14 Market Makers who join the implementation of this MMA for FX Swap including:

1. Vietnam Technological and Commercial Joint Stock Bank
2. Military Commercial Joint Stock Bank
3. Vietnam Prosperity Joint Stock Commercial Bank
4. Vietnam International Commercial Joint Stock Bank
5. Tien Phong Commercial Joint Stock Bank
6. Southeast Asia Commercial Joint Stock Bank
7. Sai Gon Thuong Tin Commercial Joint Stock Bank
8. Vietnam Maritime Commercial Join Stock Bank
9. Orient Commercial Joint Stock Bank
10. Ho Chi Minh City Development Joint Stock Commercial Bank
11. Vietnam Export Import Commercial Joint Stock Bank
12. An Binh Commercial Joint Stock Bank
13. Asia Commercial Joint Stock Bank
14. LienViet Post Joint Stock Commercial Bank

The agreement, basing on the recorded trading price in the market, will establish the protocol to determine the FX Swap Curve – a primary input to price forward contracts. The implementation of the agreement is also a necessary development for pricing interest rate derivatives such as IRS, CCS, etc., so that the market for trading interest rate products will be more diversified and completed, meeting the increasing demands of market members as well as member’s clients.

The Market Makers will have the obligation to make firm quote in 2 trading sessions per day – from 9:00 am to 9:30 am for the morning session and from 2:00pm to 2:15 pm for the afternoon session. Standard tenors, as stipulated by MMA, are Over Night (ON), 1 week,2 weeks, 1 month, 2 months, 3 months, 6 months, 9 months and 1 year.

VBMA will compile and publish FX Swap curve for each trading day on the basis of quotes provided by the Market Members in the morning sessions. The afternoon session only serves to enhance liquidity of the market. FX Swap curve, including bid, ask and mid-price, will be sent to VBMA members via email and published on VBMA’s website at 10:30 am.