What is the process of freezing and releasing margin securities, depositing and withdrawing margin in Vietnam in the regulation on clearing and settlement of derivatives transactions from June 1, 2022?
The process of freezing and releasing margin securities in Vietnam for investors' derivative transactions?
Pursuant to Part A, Appendix 5 issued together with Decision 61/QD-VSD in 2022, stipulating the process of freezing and releasing margin securities in Vietnam for derivative transactions of investors as follows:
- Clearing member sends a request to blockade/release securities on the current account at clearing member (self-trader or customer) in the form of MT524 - Request for blockade of margin securities.
- Based on the request of the clearing member, VSD will block the securities and send a confirmation to the clearing member in the form of an email MT508 -Confirmation of blockade/release of margin securities.
- In case of insufficient balance or wrong MT524 electrical structure: VSD sends a rejection notice in the form of MT548 điện-Refused to block/ release margin securities.
What is the process of freezing and releasing margin securities, depositing and withdrawing margin in Vietnam in the regulation on clearing and settlement of derivatives transactions from June 1, 2022?
Deposit deposit process in Vietnam of clearing members with VSD?
Pursuant to Section I, Appendix 5 issued together with Decision 61/QD-VSD in 2022, stipulating two procedures for depositing corresponding deposits of clearing members with VSD as follows:
Deposit payment process in Vietnam
- When the clearing member deposits money into the deposit deposit member' account at NHTT successfully, NHTT will send a Yes report to VSD in the form of an email MT910 - Credit note for the derivative margin account.
- In case the information on the MT910 email sent by NHTT to VSD matches the information managed by VSD, VSD shall:
+ Record an increase in the deposit for the respective member's deposit deposit account.
+ Send Credit to clearing members in the form of electricity MT910 - Credit report for derivative margin accounts.
- In case the investor's margin account information on the MT910 email sent to VSD by NHTT does not match the information on VSD's system (due to not being registered on VSD's system or the wrong account number), VSD generate electricity MT198 - Report the error to NHTT/NAK for NHTT to refund the clearing member.
Procedure for depositing securities in margin in Vietnam
- Clearing members send a request to transfer securities in the form of an email MT542 - Request deposit of margin securities.
- VSD checks, requests for transfer:
+ In case the balance is sufficient, the stock code is in the list of secureds approved for escrow: VSD makes a securities transfer and sends it to the clearing member notice confirmation in the form of an email MT546 - Notice of reducing balance securities on investor's account/MT544
- Notice of increasing the margin securities balance of investors at VSD.
+ In case the balance is not enough, the "stock code is not in the list" or the electronic structure is wrong MT542: VSD sends the "clearing member" a rejection notice in the form of an email MT548 - Rejects the request to submit margin securities/NAK.
Accordingly, if you fall into any of the above two cases, you will follow the corresponding deposit payment process as stated above.
Deposit withdrawal process in Vietnam of clearing members with VSD?
Pursuant to Section II, Appendix 5 issued together with Decision 61/QD-VSD in 2022, stipulating the corresponding deposit withdrawal process of clearing members with VSD as follows:
Deposit withdrawal process in Vietnam
- When there is a need to withdraw the deposit, the "clearing member" sends a request to withdraw the deposit to VSD in the form of an email MT103 - Request to withdraw the deposit in cash.
- VSD checks the validity of the request:
(i) Where the request of the “clearing member” is valid:
+ VSD sends a request to NHTT to make a request to withdraw the deposit of the clearing member in the form of an email MT103 - Request for withdrawal of deposit.
+ NHTT sends confirmation to VSD about successful transfer in the form of MT900 - Notice of successful withdrawal.
+ VSD sends confirmation to clearing member on successful deposit withdrawal in the form of MT900 - Notice of successful withdrawal.
(ii) In case the request of the clearing member is invalid, VSD will send the clearing member a notification of rejection of the deposit withdrawal request in the form of an email MT598 -Reject the deposit withdrawal request.
The process of withdrawing margin securities in Vietnam
- When there is a need to withdraw margin securities, the "clearing member" sends a request to withdraw margin to VSD in the form of an email MT542 - Request to withdraw margin in securities.
- VSD checks the validity of the request:
(i) In case the request of “clearing member” is valid, VSD shall:
+ Transfer the number of securities requested to be withdrawn from the margin securities account of the "clearing member" at VSD to the margin securities account at the member.
+ Send confirmation to clearing member on successful withdrawal of margin securities in the form of electricity MT546 - Notice of successful withdrawal of securities.
(ii) In case the request of the clearing member is invalid, VSD will send the clearing member a notice of rejection of the request to withdraw margin securities in the form of an email MT548 - Reject the request to withdraw margin securities .
Decision 61/QD-VSD in 2022 takes effect from June 1, 2022.
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