A London-based exchange group owned by Deutsche Börse and Société Générale plans to launch Vietnam’s first derivatives market by the end of 2016.

In a statement on Wednesday, GMEX Partners said it will work with Hanoi-based software firm FPT to set up a fully-functioning market for derivatives in the South East Asian country.

The pair will also work on a real-time clearing system with Vietnam’s securities depository.

Hanoi Stock Exchange, the country’s premier bourse, will handle the trading with the first instruments expected to be index-linked futures (HNX30 and VN30) and government bond futures.

Stocks, cash settled index futures, bonds, commodities, cash-and physically-settled equity futures are all part of the offering with a go-live date expected in this year’s fourth quarter.

Derivative instruments have been recognised as a concept by Vietnam law since 2006 under the Law on Securities. 

However, the green light for the development of a regulated market for such products was not given until early last year.