The Ministry of Industry and Trade has issued a licence to the HCMCity-based Trieu Phong Commodity Exchange (TPE), which is expected toopen early next year.

The first such exchangelicensed in the country, it will initially trade in steel, rubber, andcoffee, according to its general director, Nguyen Duy Phuong.

It will also provide an additional financial tool for producers andtraders to protect themselves against price fluctuation risks. Futurescontracts, swaps, and forward trading will all be available.

The exchange will help boost the trademarks of participating members,including in foreign markets, disseminate global market information, andact as a clearing and settlement intermediate. Also on October 20 TrieuPhong Commodity Exchange inked several agreements.

Under separate contracts, the Bank for Investment and Development ofVietnam and Techcombank agreed to provide services like payment andloans. SME Securities Company will consult TPE in issuing shares andlisting on one of Vietnam 's stock exchanges, and in developingderivatives.

It also entered into a memorandum ofunderstanding with the Singapore-based CWT Commodities, whichspecialises in handling and storage of ferrous and non-ferrous metalsand other commodities.

The HCM City-based Institution of Information and Business Research agreed to become a partner.

The exchange's trading system will be supplied by a British companywhich has provided comprehensive solutions to around 20 exchangesworldwide.

TPE has a charter capital of 150 billion VND (7.5 million USD) and the figure is expected to double in 2012.

It hopes to become a limited liability company firm in 2014./.