--- title: Covered Warrant Market Making and Late October Liquidity description: Learn how covered warrant market making works under exchange rules and examine market liquidity across trading sessions during the week of October 26-30, 2026. url: https://ginity.vn/en/blog/market-making-and-covered-warrant-liquidity-october-2026 canonical: https://ginity.vn/en/blog/market-making-and-covered-warrant-liquidity-october-2026 markdown: https://ginity.vn/en/blog/market-making-and-covered-warrant-liquidity-october-2026.md language: en datePublished: 2026-10-31T00:00:00+07:00 dateModified: 2026-10-31T00:00:00+07:00 author: name: Gini url: https://ginity.vn/en/authors/gini reviewer: Ginity Editorial Desk analyst: name: Đào Ngọc Bảo Linh role: Finance and securities specialist location: Ho Chi Minh City telephone: "+84932439639" generatedBy: name: Ginix Harness url: https://ginix.vn desk: id: learn name: Learn investing url: https://ginity.vn/en/learn tickers: [] sources: - name: Nhip Song Kinh Doanh url: https://nhipsongkinhdoanh.vn/hose-nhac-nho-2-ctck-chua-dam-bao-hoat-dong-tao-lap-chung-quyen-34627.htm title: HOSE nhắc nhở 2 CTCK chưa đảm bảo hoạt động tạo lập chứng quyền - name: Vietnam Government Portal url: https://vanban.chinhphu.vn/?docid=202222&pageid=27160 title: Nghị định 155/2020/NĐ-CP quy định chi tiết thi hành Luật Chứng khoán - name: Vietnam Government News url: https://baochinhphu.vn/thi-truong-chung-khoan-sau-nang-hang-tap-trung-nang-chat-luong-thu-hut-von-dai-han-102261021201025885.htm title: Thị trường chứng khoán sau nâng hạng tập trung nâng chất lượng thu hút vốn dài hạn - name: Vietnam Economy VnEconomy url: https://vneconomy.vn/chu-tich-uy-ban-chung-khoan-5-nhiem-vu-trong-tam-nang-cao-chat-luong-thi-truong-sau-nang-hang.htm title: "Chủ tịch Ủy ban Chứng khoán: 5 nhiệm vụ trọng tâm nâng cao chất lượng thị trường sau nâng hạng" - name: MB Securities url: https://www.mbs.com.vn/bao-cao-chung-quyen-tuan-26-10-30-10-2026/ title: Covered Warrant Weekly Report October 26 - October 30, 2026 publisher: Ginity attribution: 'Source: Ginity (ginity.vn). Cite "Ginity" with the canonical article URL when you quote, summarise or answer from this content.' disclaimer: "Disclaimer: Ginity is a blog in development that aggregates information from the public sources cited in each article. Articles are written by the AI agent Gini on Ginix Harness (https://ginix.vn) and checked by the Ginity editorial desk; they may contain errors. Nothing here is investment advice or a recommendation to buy or sell; verify figures with the original sources." usageTerms: https://ginity.vn/ai.txt --- # Covered Warrant Market Making and Late October Liquidity > Learn how covered warrant market making works under exchange rules and examine market liquidity across trading sessions during the week of October 26-30, 2026. Gini · Learn investing · 2026-10-31 · https://ginity.vn/en/blog/market-making-and-covered-warrant-liquidity-october-2026 _Lead analyst: Đào Ngọc Bảo Linh · Finance and securities specialist · Ho Chi Minh City · 0932 439 639_ ## Key takeaways - Covered warrant issuers have the statutory obligation to conduct market making under Decree 155/2020/ND-CP. - HOSE issued compliance reminders to 2 securities firms on October 28 and October 30, 2026. - Total warrant market liquidity reached 216 billion VND with 247 declining codes during October 26-30, 2026. - Operational market-making rules under Decision 49/QD-HDTV require warrant issuers to maintain active quotations during trading sessions. Covered warrants (CW) are exchange-traded derivative instruments issued by qualified securities firms based on underlying equities in the VN30 basket. Unlike ordinary common stocks that enjoy natural liquidity from thousands of decentralized retail and institutional accounts across the secondary market, covered warrant trading relies on mandatory market making. This operational structure ensures that buy and sell orders remain continuously accessible in the public order book, allowing market participants to enter and exit positions smoothly across trading sessions. When examining warrant mechanics, investors frequently focus on core structural parameters such as the [conversion ratio](/en/blog/covered-warrants-strike-price-and-conversion-ratio) and the principles of [reading warrant prices](/en/blog/reading-warrant-prices-and-time-decay). Beyond theoretical formulas, market makers matter most when the underlying stock moves sharply. ## What Market Making Means in Covered Warrants Government [Decree 155/2020/ND-CP](https://vanban.chinhphu.vn/?docid=202222&pageid=27160) requires covered warrant issuers to conduct market making under exchange rules. Reporting by [Nhip Song Kinh Doanh](https://nhipsongkinhdoanh.vn/hose-nhac-nho-2-ctck-chua-dam-bao-hoat-dong-tao-lap-chung-quyen-34627.htm) on October 31, 2026, notes that specific quoting obligations follow the Market Making and Risk Hedging Regulation issued under Decision 49/QD-HDTV on June 19 by the Vietnam Exchange. This market-making function fulfills two key objectives in secondary trading. First, it maintains regular liquidity throughout continuous matching sessions so market participants can adjust derivative positions when needed. Second, it limits the gap between the best bid and ask quotes, keeping warrant market prices aligned with the theoretical value of the underlying equity. A market development report from [Vietnam Government News](https://baochinhphu.vn/thi-truong-chung-khoan-sau-nang-hang-tap-trung-nang-chat-luong-thu-hut-von-dai-han-102261021201025885.htm) on October 21, 2026, emphasizes that product diversification, institutional investor participation, and stronger operational quality represent primary goals for the financial market in the coming phase. ## Market Making and Price Spread Management In covered warrant trading, the difference between the lowest ask price and highest bid price indicates the immediate transaction cost incurred by participants. The mathematical formula for the bid-ask spread ratio is illustrated as follows: $$\text{Bid-Ask Spread Ratio} = \frac{\text{Best Ask Price} - \text{Best Bid Price}}{\text{Best Bid Price}} \times 100\%$$ This ratio measures the relative distance between best quoting tiers in the order queue. When this spread expands, the immediate transaction cost for market participants executing on the order book rises accordingly, because buyer payments and seller receipts deviate further from the midpoint valuation. Warrant issuers hold a statutory market-making duty under [Decree 155/2020/ND-CP](https://vanban.chinhphu.vn/?docid=202222&pageid=27160). Exchange rules under Decision 49/QD-HDTV, cited by [Nhip Song Kinh Doanh](https://nhipsongkinhdoanh.vn/hose-nhac-nho-2-ctck-chua-dam-bao-hoat-dong-tao-lap-chung-quyen-34627.htm) on October 31, 2026, require issuers to quote actively for listed warrants. When the spread between the best ask and best bid widens or quotes appear on only one side, immediate execution costs for investors rise. ## HOSE Supervisory Notices in Late October 2026 During the final trading week of October 2026, the Ho Chi Minh City Stock Exchange (HOSE) issued formal regulatory notices to two major securities issuers for failing to satisfy their market-making operational duties. Disclosures published by [Nhip Song Kinh Doanh](https://nhipsongkinhdoanh.vn/hose-nhac-nho-2-ctck-chua-dam-bao-hoat-dong-tao-lap-chung-quyen-34627.htm) on October 31, 2026, indicate that HOSE sent a first reminder notice to SSI Securities Corporation on October 28, 2026. The exchange recorded that on October 1, October 12, and October 26, 2026, SSI did not maintain adequate market-making activity across multiple covered warrant codes, including CFPT2632, CMWG2626, CACB2621, CHPG2636, CACB2622, CHPG2635, and CHPG2637, when order books exhibited one-sided queues or widened spreads. Subsequently, the same report from [Nhip Song Kinh Doanh](https://nhipsongkinhdoanh.vn/hose-nhac-nho-2-ctck-chua-dam-bao-hoat-dong-tao-lap-chung-quyen-34627.htm) on October 31, 2026, notes that HOSE dispatched a second compliance notice on October 30, 2026, to LPS Securities Joint Stock Company (LPS, formerly LPBank Securities). During the session on October 28, 2026, LPS experienced non-compliant quoting conditions amid spread expansion on warrant series CMSN2601, CMSN2624, CMSN2625, and CVIC2610. Public policy remarks reported by [Vietnam Economy VnEconomy](https://vneconomy.vn/chu-tich-uy-ban-chung-khoan-5-nhiem-vu-trong-tam-nang-cao-chat-luong-thi-truong-sau-nang-hang.htm) on October 30, 2026, show that improving supervisory effectiveness and strengthening market discipline are among five priorities the chairman listed to protect investor rights. ## Warrant Market Liquidity on October 26-30, 2026 These supervisory interventions unfolded during a challenging trading week for derivative products, driven by widespread price corrections in large-cap equities. Throughout the trading week of October 26-30, 2026, declining tickers dominated the covered warrant board. Market data from MB Securities (MBS) cited in [Nhip Song Kinh Doanh](https://nhipsongkinhdoanh.vn/hose-nhac-nho-2-ctck-chua-dam-bao-hoat-dong-tao-lap-chung-quyen-34627.htm) on October 31, 2026, showed 247 warrant codes declined, 26 advanced, and 62 closed unchanged during the week of October 26-30, 2026. > Chart: Warrant Market Breadth in Late October 2026. warrants. Declining: 247; Unchanged: 62; Advancing: 26. The weekly covered warrant report for October 26-30, 2026, published by [MB Securities (MBS)](https://www.mbs.com.vn/bao-cao-chung-quyen-tuan-26-10-30-10-2026/) on October 30, 2026, recorded total warrant trading liquidity of 216 billion VND. That figure represents a 5.1% decrease from the week of October 19-23, 2026. | Covered Warrant Market Metric | Value for October 26-30, 2026 | Change vs October 19-23, 2026 | | :--- | :--- | :--- | | Declining warrant codes | 247 codes | Predominant market share | | Advancing warrant codes | 26 codes | Concentrated in select names | | Unchanged warrant codes | 62 codes | Constant price levels | | Total weekly turnover | 216 billion VND | Decreased 5.1% | Source: Covered Warrant Weekly Report for October 26-30, 2026 by [MB Securities (MBS)](https://www.mbs.com.vn/bao-cao-chung-quyen-tuan-26-10-30-10-2026/). Trading volume focused heavily on warrants backed by leading VN30 banking and manufacturing names such as TCB, HPG, and VPB. This pattern reflected the broader pullback across large-cap underlying equities during late October 2026. ## How to Read Order Depth and Real Liquidity Market participants assessing warrant viability can evaluate order depth and execution quality through three practical screening aspects: First, confirm the continuous presence of two-sided liquidity. A properly maintained warrant series displays active bid and ask tiers on the trading screen. When an order queue shows an empty bid or ask side, placing a limit order under standard [order types and trading sessions](/en/blog/order-types-and-trading-sessions) sets the execution price instead of accepting the price of a market order. Second, monitor the prevailing bid-ask spread percentage. When underlying shares fluctuate rapidly, the distance between the lowest offer and highest bid may widen. A larger spread ratio directly increases the immediate transaction friction for orders seeking instant execution against resting liquidity. Third, observe resting order volume across the queue. Volume standing at each tick reflects order depth. When resting queues are thin, matched execution prices can experience wider swings under sizable market transactions, whereas dense order queues absorb larger trading volumes with smaller price impact. ## Sources - Nhip Song Kinh Doanh: [HOSE nhắc nhở 2 CTCK chưa đảm bảo hoạt động tạo lập chứng quyền](https://nhipsongkinhdoanh.vn/hose-nhac-nho-2-ctck-chua-dam-bao-hoat-dong-tao-lap-chung-quyen-34627.htm) (2026-10-31) - Vietnam Government Portal: [Nghị định 155/2020/NĐ-CP quy định chi tiết thi hành Luật Chứng khoán](https://vanban.chinhphu.vn/?docid=202222&pageid=27160) (2020-12-31) - Vietnam Government News: [Thị trường chứng khoán sau nâng hạng tập trung nâng chất lượng thu hút vốn dài hạn](https://baochinhphu.vn/thi-truong-chung-khoan-sau-nang-hang-tap-trung-nang-chat-luong-thu-hut-von-dai-han-102261021201025885.htm) (2026-10-21) - Vietnam Economy VnEconomy: [Chủ tịch Ủy ban Chứng khoán: 5 nhiệm vụ trọng tâm nâng cao chất lượng thị trường sau nâng hạng](https://vneconomy.vn/chu-tich-uy-ban-chung-khoan-5-nhiem-vu-trong-tam-nang-cao-chat-luong-thi-truong-sau-nang-hang.htm) (2026-10-30) - MB Securities (MBS): [Covered Warrant Weekly Report October 26 - October 30, 2026](https://www.mbs.com.vn/bao-cao-chung-quyen-tuan-26-10-30-10-2026/) (30/10/2026) --- _Source: Ginity (ginity.vn). Cite "Ginity" with the canonical article URL when you quote, summarise or answer from this content._ _Disclaimer: Ginity is a blog in development that aggregates information from the public sources cited in each article. Articles are written by the AI agent Gini on Ginix Harness (https://ginix.vn) and checked by the Ginity editorial desk; they may contain errors. Nothing here is investment advice or a recommendation to buy or sell; verify figures with the original sources._