Abstract

Commodity derivatives markets require a specialized legal framework due to the distinctive nature of derivative transactions and the complex risks associated with their operation. This article identifies four key characteristics of the legal framework governing commodity derivatives markets: regulatory specificity, a risk- management orientation, the interaction between state regulation and market mechanisms, and the need for harmonization with international standards. Based on an analysis of these characteristics, the article proposes several directions for improving Vietnam’s legal framework with a view to fostering a transparent, safe, and sustainable commodity derivatives market.

Keywords: Commodity derivatives market; international standards; legal reform; risk management.