What are the requirements for an organization to register as a clearing member of the Vietnam Securities Depository and Clearing Corporation?
- What are the requirements for an organization to register as a clearing member of the Vietnam Securities Depository and Clearing Corporation?
- What is included in the application for registration as clearing members in Vietnam?
- In what cases can the Vietnam Securities Depository and Clearing Corporation refuse to grant membership of clearing members in Vietnam?
What are the requirements for an organization to register as a clearing member of the Vietnam Securities Depository and Clearing Corporation?
According to the provisions of Clause 1, Article 30 of Decree No. 158/2020/ND-CP, an organization wishing to register as a clearing member of the Vietnam Securities Depository and Clearing Corporation (VSDCC) must satisfy the following requirements:
Clearing member registration
1. When applying for registration as a clearing member of VSDCC, a securities company, commercial bank or foreign bank branch is required to meet the following requirements:
a) Obtain the certificate of eligibility to provide derivative clearing and settlement services issued by State Securities Commission;
b) Be trading member or special trading member on the derivative market of Stock Exchange;
c) Meet the requirements laid down by VSDCC pertaining to information technology infrastructure and operational procedures for clearing and settlement activities.
Thus, an organization wishing to register as a clearing member of the Vietnam Securities Depository and Clearing Corporation must satisfy the following requirements:
- Obtain the certificate of eligibility to provide derivative clearing and settlement services issued by State Securities Commission;
- Be trading member or special trading member on the derivative market of Stock Exchange;
- Meet the requirements laid down by VSDCC pertaining to information technology infrastructure and operational procedures for clearing and settlement activities.
What are the requirements for an organization to register as a clearing member of the Vietnam Securities Depository and Clearing Corporation?
What is included in the application for registration as clearing members in Vietnam?
According to the provisions of Clause 2, Article 30 of Decree No. 158/2020/ND-CP:
Clearing member registration
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2. An application for registration as clearing member consists of:
a) The application form made using Form No. 08 in the Appendix enclosed herewith;
b) The certificate of eligibility to provide derivative clearing and settlement services issued by State Securities Commission;
c) Decision to grant membership of trading member or Decision to grant membership of special trading member issued by Stock Exchange;
d) The description of the applicant’s information technology infrastructure and operational procedures as prescribed by VSDCC.
3. A full set of original application documents is required. If a copy of document is submitted, it must be a copy extracted from master register or a certified copy. The application shall be submitted to VSDCC directly or by post.
4. Within 07 business days from the receipt of the application, if the received application is adequate and valid, VSDCC shall give written principal approval for clearing member registration to the applicant and request the applicant to make preparations for clearing and settlement activities; if the received application is inadequate and invalid, VSDCC shall request the applicant in writing to revise it.
5. Within 01 business day from the day on which the applicant completes all preparations as requested by VSDCC, VSDCC shall issue a certificate of clearing member.
Thus, the organization registering clearing members must prepare the documents according to the above provisions.
In what cases can the Vietnam Securities Depository and Clearing Corporation refuse to grant membership of clearing members in Vietnam?
According to the provisions of Clause 6, Article 30 of Decree No. 158/2020/ND-CP:
Clearing member registration
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6. VSDCC shall refuse to grant membership of clearing member in the following cases:
a) The applicant fails to meet membership requirements;
b) The application for registration as clearing member contains forged documents or false information;
c) The applicant fails to complete procedures for issuance of certificate of clearing member within 90 days from the day on which VSDCC issues a written principal approval for clearing member registration.
VSDCC shall give a written notice of refusal, in which reasons for refusal must be indicated, to the applicant, and disclose relevant information on its media.
Thus, in case the applicant fails to meet membership requirements; the application for registration as clearing member contains forged documents or false information; the applicant fails to complete procedures for issuance of certificate of clearing member within the time limit, the Vietnam Securities Depository and Clearing Corporation has the right to refuse to grant membership of clearing member.
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