Items Covered warrants StocksFutures
Type of marketCash marketCash marketDerivatives
IssuerSecurities companiesCorporatesThe Stock Exchange
Life time 3 – 24 monthsUntil the corporate is bankrupt or delisted

Current Month / Next Month / 02 last months of the 02 nearest quarters

Type of tradePrice of CWPrice of StockThe index points (currently the VN30 Index)
Foreign ownership limitNoYesNo
Maximum lossPrice of the CW and fees (if any)Price of the stock and fees (if any)No limit
Transfer of assetBetween the securities company and the investorBetween investors Between investors
Trading feeCircular 102/2021/TT - BTCCircular 102/2021/TT - BTCCircular 102/2021/TT - BTC
Settlement time
  • Secondary market: T+2
  • Maturity: T+5 (if the CW status is ITM)
  • T+0: Ownership recognized
  • T+1: Profit / Loss settlement
Trading BandsAffected by the listed stock price
  • HSX: +/- 7%
  • HNX: +/- 10%
  • Upcom: +/- 15%
+/- 7%


ItemCovered Warrant (CW)Corporate Warrant 
IssuerSecurities companies Corporates
  • Providing investment tools and risk hedging tools
  • Increasing revenues

Increasing Charter Capital 


CollateralVarious (ETF, stocks, etc.)Stocks
ScopeRights to trade listed stocksRight to buy additional issuance
After right executionTotal outstanding shares unchangedTotal outstanding share increase


No. Price of Covered Warrant on the market will not be adjusted when there is a corporate action (dividends, additional issuance, etc.). However, the execution price and the conversion ratio of CW will be adjusted. The method and information disclosure when adjusting the CW will be stated in the Issuer’s prospectus.

Example: Unit: VND

 Time June 25June 26 VNM pay cash dividends (VND 3,000/ share)
Price of VNM 129,500126,500
VNM Price of VNM CW 4,5004,500
Execution price 118,000118,000 x (126,500 / 129,500) = 115,263
Conversion Ratio2:12 x (126,500 /129,500) = 1.954
New Ratio 1.954:1


Similar to listed stocks, CW will be suspended in the following cases:

  • The collateral is suspended.
  • Natural disasters and other technical issues with the trading/ payment system.
  • Any case that the Stock Exchange deems necessary to protect the benefit of investors (Example: The Issuer fails to comply to risk management regulations, etc.).


When trading CW listed on the Stock exchange, investors can use their securities trading account. 

No. According to regulations from the State Securities Commission (SSC) and the Ho Chi Minh Stock Exchange (HSX), investors are not allowed to use margin to trade CWs.

Same principle as the listed stocks, investors are not allowed to short-sell. Investors must own the CW (buy the CW) before they can sell.

When a CW right is executed, the payment will be made within 05 business days since the maturity date.


In the case the investor does not request to execute the CW right when the status is ITM (Profit), the Issuer still has to make payment to the investor.

No. The Issuer is not allowed to trade CWs that are issued by it.

Yes. Insiders and related parties of the Issuer are allowed to trade its CWs. However, they need to disclose the information at least 03 business days prior to the trade.

No. Investors who own the CWs have no right over the stock that is used as collateral.

Only securities companies that meet the criteria regarding profitability, owner’s equity stated in the Decree No. 60/2015/ND-CP can issue CWs.

In addition, the Issuer can only offer CWs within the limit stated by the SSC. Specifically:

  • For the collateral: The total number of CWs from all issuers must not exceed the limit compared to the total outstanding shares.
  • For an issuance: The number of CW issued in a single issuance must not exceed the limit compared to the total outstanding shares of the collateral.
  • For the Issuer: Total number of CWs issued and to be issued (excluding delisted and matured CWs) must not exceed the disposable capital of the Issuer. This limit is applied during the period when the SSC processes the approval for the CW issuance.

CW is a contract between the investor and the securities company that issues CW, in which the Issuer has the obligation to pay the profits (if any) to the investor. In order to ensure the rights of the investor and the Issuer’s ability to make the payment, Circular 107/2016/TT-BTC stated:

  • Before the issuance, the Issuer must make a deposit of at least 50% of the total value of the CW. This deposit is kept at the custodian bank during the lifetime of the CW.
  • Every day the Issuer must perform hedging measures for the current outstanding CWs and report to the Exchange. The purpose is to make sure that the Issuer is capable of making the payment to the investor.

With the main purpose is of providing liquidity for the market, the market maker will constantly trade on the market, and it must trade in the following cases:

  • There is only a Bid/ Ask order.
  • There is no buyer/ seller of the CWs.
  • The price difference on the market exceed 5%. The price difference = (Lowest offer price – Highest bid price)/ Highest bid price.

The time for the market maker to perform its duties is during the continuous matching session (except for the first 05 minutes) with the following conditions:

  • Minimum volume per order is 100 CWs.
  • Price must not exceed the price difference of 5%.
  • Orders must be valid for at least 01 minute.

-          Market Makers are exempted from its duties in the following cases:

  • The stock used as collateral is suspended.
  • The CW price calculated using the formula above is less than VND 10.
  • The volume of CW in the market maker is less than 100, the Issuer will not need to place an offer order.
  • When there is no outstanding CWs, the Issuer will not need to place a bid order.
  • When the CW is being delisted, the Issuer will not need to place an offer order.
  • When the CW price reaches ceiling price (excess bid), the Issuer will not need to place offer orders, when the CW price reaches floor price (excess offer), the Issuer will not need to place bid orders.
  • When the price of the stock reaches ceiling price, the Issuer will not need to place offer orders for Call CWs nor bid orders for Put CWs, and vice versa.
  • When the CW is ITM with 30% return or above, the Issuer will not need to place offer orders.
  • 14 days before maturity.
  • Under objective events such as natural disasters, fire, war, etc.
  • Others with the approval from the SSC.