Latest requirements for margin assets in Vietnam in securities? How to value margin assets in Vietnam?
What are the requirements for margin assets in Vietnam in securities?
According to Article 6 Decision 61/QD-VSD in 2022 Regulations on requirements for escrow assets in Vietnam in securities are as follows:
"Article 6. Requirements for escrow assets in securities
1. The list of securities accepted for escrow includes:
aGovernment bonds, government-guaranteed bonds, excluding Treasury bills
b. Securities listed on stock exchanges (stocks, investment fund certificates, excluding ETF certificates)
. The deposit specified at Point b, Clause 1 of this Article must simultaneously satisfy the following conditions:
a. Be on the list of securities as margin assets periodically determined by VSD based on the liquidity of securities according to the prescribed method. specified in Appendix 3 to this Regulation
b. Fully satisfying the conditions specified at Points b, c, d, Clause 3, Article 14 of Circular 58/2021/TT-BTC;
3. List The list of securities accepted for margin (including the discount rate) is determined by VSD and published on VSD's website every 6 months and remains unchanged until the next announcement period. Special case In fact, securities that no longer satisfy the conditions specified at Point b, Clause 2 of this Article will be considered and removed by VSD from the announced list of securities accepted for margin.
Latest requirements for margin assets in Vietnam in securities? How to value margin assets in Vietnam?
Pursuant to Clause 3, Article 14 Circular 58/2021/TT-BTC as follows:
"Article 14. Escrow assets
...
3. Securities accepted by Vietnam Securities Depository and Clearing Corporation as escrow assets for investors Derivatives must fully satisfy the following criteria:
a) Belonging to the list of assets accepted as margin of the Vietnam Securities Depository and Clearing Corporation;
b) Not in the warning category, being controlled, temporarily suspended from trading on the Hanoi Stock Exchange, the Ho Chi Minh Stock Exchange; or the securities of the issuers are in a state of liquidation, dissolution, bankruptcy, consolidation or merger;
c) Not being mortgaged, blocked or temporarily held at the Vietnam Securities Depository and Clearing Corporation;
d) Being freely transferable and deposited in a securities account transactions at the Vietnam Securities Depository and Clearing Corporation; is an asset owned by the escrow party being an investor or a clearing member
; depository and clearing company except for Vietnamese securities."
How to evaluate margin assets in Vietnam?
According to Article 7 Decision 61/QD-VSD in 2022 stipulates the valuation of escrow assets in Vietnam as follows:
"Article 7. Valuation of escrow assets
1. The valid value of escrow assets is determined according to the formula Following:
Where:
VKQ is the value of the valid margin assets
C is the deposit amount
x is the minimum deposit rate in cash
QKQ is the amount of margin securities
P is the margin securities price according to the following: specified in Clause 2 of this Article
H is the discount rate for margin securities as prescribed in Article 8 of this Regulation
. Clause 1 of this Article is updated daily after the end of the trading session:
a) For government bonds, government-guaranteed bonds: is the price determined based on the yield curve of government bonds of the Hanoi Stock Exchange
b) For securities listed on the Stock Exchange: is the closing price at the transaction date."
How to manage margin assets in Vietnam?
Pursuant to Clause 5, Article 14 Circular 58/2021/TT-BTC regulates the management of escrow assets in Vietnam as follows:
"Article 14. Escrow assets
...
5. Escrow asset management:
a) Depository Corporation signing and clearing Vietnamese securities, clearing members manage margin assets of clearing members and investors according to the provisions of Articles 33 and 34 of Decree No. 158/2020/ND-CP
; ) Clearing members may only use margin assets on investors' margin accounts to make margin, secure payment obligations, and make payments for positions on their respective trading accounts. such investor, except as prescribed at Points d and dd of this Clause;
c) The investor's margin assets must be managed separately, not and should not be considered as assets of clearing members, including Even after being deposited on a member's escrow account.In case a clearing member goes bankrupt, the investor's margin property must be returned to the investor after the payment obligations of the clearing member have been fulfilled. the investor himself;
d) In the event that the investor is insolvent, clearing members, clearing members can use, sell or transfer escrow assets without investor approval. Within 01 day after handling margin assets, clearing members must notify investors of the handling of escrow assets according to the methods specified in the securities trading account opening contract. Derivative. The notice must clearly state the reason, the type of property handled, the method and time of handling, and the value of the property;
dd) Vietnam Securities Depository and Clearing Corporation has the right to use margin assets of investors and clearing members already submitted to Vietnam Securities Depository and Clearing Corporation to support pay for positions of investors and clearing members as prescribed at Points c and dd, Clause 5, Article 28 of Decree No. 158/2020/ND-CP;
e) During the escrow period, investors and clearing members are still entitled to receive arising rights and benefits related to margin securities in accordance with the law on enterprises and the law on securities. The handling to ensure the interests of investors with respect to margin securities shall comply with the regulations of the Vietnam Securities Depository and Clearing Corporation;
g) During the deposit period on the escrow account, investors and clearing members may not transfer, give, donate, mortgage, pledge, deposit, deposit, register security assets or use use escrow assets for other purposes."
Decision 61/QD-VSD in 2022 takes effect from June 1, 2022.
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