This move aims to standardize the fragmented market amid volatile global prices.
Participating in the meeting were representatives from MXV, businesses trading in gold, silver, and gemstones, and units expected to participate in the supply chain, custody, and trading operations.
According to Tran Huu Linh, Director of the Vietnam Directorate of Market Surveillance, the demand for silver trading has been increasing recently, amidst strong and large fluctuations in domestic and international silver prices. Studying the listing of silver on MXV is necessary to gradually standardize trading activities. However, the implementation process must be comprehensively evaluated to ensure transparency, system security, and the rights of all participating parties.
Currently, silver trading in Vietnam is mainly conducted through direct physical transactions, via agreements between parties. This model is still fragmented, lacking a centralized pricing mechanism, standardization of information and commodity standards, and risk mitigation tools. In the context of volatile prices, this situation poses risks to individuals, investors, and businesses.
At the meeting, MXV reported on its plan for organizing trading, the mechanism for delivering and clearing silver bars, and settlement. According to the proposal, implementation is expected to be divided into two phases: the first phase will pilot listing and physical trading domestically. Once the market is stable, integration with regional and international commodity exchanges will be considered.
Gold and silver trading businesses stated their readiness to ensure production capacity and cooperate in implementing regulations on goods delivery. However, the current silver supply still relies primarily on imports.
Representatives from Vietnam Maritime Commercial Bank (the prospective provider of the custody service) stated that they have prepared the necessary infrastructure, storage systems, and security measures for the safekeeping of silver bars, and that they can expand the service as needed by the market.
Regulatory authorities believe that introducing silver into trading on the Commodity Exchange requires careful consideration, based on a thorough assessment of its socio-economic impacts and management requirements. Risk control mechanisms such as limiting trading positions, controlling speculation, and ensuring system security need to be studied and established appropriately.
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