Securities companies moonlighting as gold agents

VietNamNet Bridge – More and more securities companies are receiving gold investors’ orders for gold trading floors. However, the fate of this "part-time" employment is in doubt as securities companies have been ordered to shut down their securities order receiving agents per Decision No 126 issued by the Ministry of Finance.

Gold trading floors now more favored than OTC

Securities companies have been insisting that they need to cooperate with gold trading floors to get more work in the context of the stock market's falls, which are expected to continue.

Phan Quoc Huynh, Director of Vietinbank Securities Company

Securities companies serving as agents receiving gold investors’ orders has become popular. Vietinbank SC has signed a cooperation agreement with VIG Company and we plan to open an agent receiving investors’ orders on March 15.

A lot of securities companies have been facing big difficulties as they only provide securities brokerage services, which do not bring enough turnover to cover expenses. In principle, this will not affect securities service quality provided by securities companies. A lot of investors have left the stock market for gold trading floors as gold investments have become very attractive.

Phan Van Ha, General Director of Artex Securities Company

Artex has cooperated with VGB Company to open an agent receiving gold investors’ orders. When demand arises, supply is available. It is understandable why securities companies are becoming order-receiving agents. This will bring more money to companies, while the companies can take full advantage of their technologies, network and staffs.

Nguyen Ba Thang, Deputy General Director of Dai Viet Securities Company

I think that it is necessary for securities companies to become gold-order receiving agents. As the stock market has been falling, securities companies have been trying to seek opportunities in the gold market. Securities companies do not have to make big investments in agents, as they can use their operational networks and staffs.

Dinh Nho Bang, Secretary General of the Vietnam Gold Business Association

The government has assigned the State Bank of Vietnam and other seven ministries to compile regulations on the operations of gold trading floors. The compilation team is still awaiting instructions from the central bank.

We have found out that in Shanghai and Hong Kong, gold trading floors are organised and kept under strict control, they do not mushroom like in Vietnam.

I know that a lot of securities companies have been acting as agents receiving orders from investors. I think that this will only help the companies overcome current difficulties. There are no regulations on the operations of gold trading floors.

VietNamNet/DTCK