Depositing margin in Vietnam for derivatives trading can be money or securities? How to withdraw escrow assets in Vietnam?
Margin assets in Vietnam for derivatives trading can be money or securities?
Pursuant to Clause 1, Article 10 Decision 61/QD-VSD in 2022 on the regulation on clearing and settlement of derivatives transactions at the Vietnam Securities Depository Center stipulating the deposit of margin assets in Vietnam as follows:
"Article 10. Deposit deposit
1. Deposit in cash:
a. Clearing member shall pay deposit of member and customer to member's escrow deposit account in the name of VSD opened at NHTT. The clearing member's fund must clearly state that it is depositing and have full information on the type of deposit account (self-trader, customer), detailed deposit value according to each established escrow account.clearing member registers with VSD
b. Based on the clearing member's deposit payment, the Bank will send a telegram to notify VSD of the amount of the clearing member's payment to the trading margin account and/ or the amount paid by the clearing member to the customer's escrow account.The amount deposited before 16h30 working day will be notified by the Bank to VSD for processing within the day. Deposit after 16:30 working day will be notified by the Bank to VSD for processing on the next working day.
c. After receiving the notice from NHTT, VSD checks the escrow account information and records an increase in the value of escrow assets on the escrow account of the member and each investor and sends a telegram to the clearing member. apart from.
d. In case the investor escrow account information sent by the Bank does not match the information on VSD's system, VSD will notify the Bank to return the deposit to the clearing member.
2. Deposit in securities:
a. Depending on the purpose of initial deposit or security deposit for the performance of futures contracts, clearing members send VSD a request to transfer securities from the investor's current account. Particularly in case a clearing member uses loan bonds on VSD's securities lending and borrowing system to pay a deposit to secure the performance of the futures contract, the clearing member sends VSD a request for a securities transfer according to Form 01. /PS-TTBT promulgates together with this Regulation into the member's cash register account.
A request for securities transfer must include full information about the stock code, the quantity of securities deposited, the purpose of the deposit, and the investor's escrow account and send it to VSD by 4:00 p.m. business days at the latest.
b. Based on the clearing member's margin transfer request, VSD will record an increase in the number of securities in the member's current account. After that, VSD will notify clearing members to make corresponding accounting.
3. The process of exchanging information between VSD and the Bank and the clearing member in the activities of depositing deposits in cash and securities mentioned in Clauses 1 and 2 of this Article shall comply with the instructions in Appendix 5 enclosed herewith. according to this Regulation."
Depositing margin in Vietnam for derivatives trading can be money or securities? How to withdraw escrow assets in Vietnam?
How to withdraw margin assets in Vietnam in Vietnam for derivatives trading?
Pursuant to Article 11 Decision 61/QD-VSD in 2022 on the regulation on clearing and settlement of derivatives transactions at the Vietnam Securities Depository Center provides for withdrawal of margin assets in Vietnam as follows:
"Article 11. Withdrawal of escrow assets
1. Clearing members are entitled to withdraw escrow assets when meeting the following conditions
: Clause 1, Article 13 of this Regulation;
b. The quantity of securities withdrawn must be less than or equal to the quantity of securities deposited in the member's SSC account (in the case of withdrawal of escrow assets by securities)
. The withdrawal request is not in the status of suspended trading due to breach of margin usage threshold, position limit violation or insolvency."
2. Deposit withdrawal
Clearing members send VSD a request for deposit withdrawal, detailing the deposit amount to be withdrawn according to each investor's escrow deposit account from 08h00 to 16h00 working day . Pursuant to the provisions at Points a and c, Clause 1 of this Article, VSD shall check the clearing member's request for withdrawal of deposit. In case the request to withdraw the deposit is invalid, VSD will send a telegram to the clearing member and clearly state the reason. In case of valid deposit withdrawal request:
a. VSD instructs the TT Bank to transfer money to clearing members, and at the same time, separately manage the deposit amount requested for withdrawal so that it is not included in the value of valid escrow assets when determining the asset utilization ratio. deposit of that clearing member.
b. Based on VSD's instructions, the Bank shall transfer the deposit from the member's escrow deposit account to the deposit receiving account that the clearing member has registered and send a telegram to VSD.
c. Based on the debit message of the Bank, VSD will write down the money value on the respective escrow account and notify the relevant clearing member.
3. Withdrawal of margin securities
Clearing members send VSD a request for withdrawal of margin securities, detailing the code and quantity of margin securities to be withdrawn according to each investor's trading account from 8:00 a.m. to 4:00 p.m. daily. work. Pursuant to the provisions of Clause 1 of this Article, VSD shall check the clearing member's request to withdraw margin securities. In case the request to withdraw margin securities is invalid, VSD shall send a telegram to the clearing member and clearly state the reason., VSD shall transfer securities from a member's margin account to the investor's account and notify the relevant clearing member."
How is the replacement of the stock fund in the securities trading class born?
According to Article 12 Decision 61/QD-VSD in 2022 on the regulation on clearing and settlement of derivative securities transactions at the Vietnam Securities Depository Center provides for the replacement of margin securities as follows:
"Article 12. Substituting margin securities
1. Clearing membersecurities margin, provided that the substitute securities fully satisfy the requirements for collateral assets with securities specified in Article 6 of this Regulation.
substituteMargin securities:
a) Margin securities no longer satisfy the conditions specified in Clause 2, Article 6 of this Regulation;
b. Government bonds/Government-guaranteed bonds to maturity.
3 In cases where it is forced to replace margin securities as prescribed in Clause 2 of this Article, VSD will send a written request to replace margin securities according to Form 02/PS-TTBT attached to this Regulation. to clearing members in the form of email and by post
4. From the date of receiving the written request of VSD (whichever comes first), the clearing member must Implement the process of replacing margin securities according to the following deadlines:
a. Within 02 working days, for securities that no longer satisfy the conditions due to redefining the margin securities portfolio based on liquidity or Government bonds/Government-guaranteed bonds to maturity term;
b. Within a working day, for securities that no longer satisfy the conditions specified at Point b, Clause 2, Article 6 of this Regulation.
5. The replacement of margin securities is carried out according to the principle of depositing new margin securities, then withdrawing the margin securities to be replaced according to the process of depositing and withdrawing escrow assets specified in Articles 10 and 11 This Regulation."
Decision 61/QD-VSD in 2022 takes effect from June 1, 2022.
LawNet
10 view