What are the conditions for becoming a member of the Vietnam Stock Exchange?
Who are the members of the Vietnam Stock Exchange?
Pursuant to the provisions of Clause 1, Article 47 of the 2019 Law on Securities in Vietnam, members of the Vietnam Stock Exchange include:
- Securities companies recognized as exchange members by Vietnam Stock Exchange;
- Commercial banks, foreign bank branches and other organizations recognized as special exchange members by Vietnam Stock Exchange.
When becoming a member of the Vietnam Stock Exchange, they must ensure the implementation of the rights and obligations specified in Clauses 2 and 3, Article 47 of the 2019 Law on Securities in Vietnam as follows:
Members of Vietnam Stock Exchange
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2. Members of Vietnam Stock Exchange have the rights to:
a) Use the securities trading system and services provided by Stock Exchange and its subsidiaries;
b) Receive market information from Vietnam Stock Exchange and its subsidiaries;
c) Request Vietnam Stock Exchange to act as a mediator to settle their securities-related disputes;
d) Raise issues relevant to securities trading by Vietnam Stock Exchange and its subsidiaries;
dd) Other rights prescribed by law and the charter of Vietnam Stock Exchange.
3. Members of Vietnam Stock Exchange have the obligations to:
a) Have their securities trading and information disclosure supervised by Vietnam Stock Exchange and its subsidiaries in accordance with regulations of Vietnam Stock Exchange;
b) Disclose information in accordance regulations of law and Vietnam Stock Exchange;
c) Assist other members in trading at the request of Vietnam Stock Exchange and its subsidiaries where necessary;
d) Other rights prescribed by law and the charter of Vietnam Stock Exchange.
What are the conditions for becoming a member of the Vietnam Stock Exchange?
What are the conditions for becoming a member of the Vietnam Stock Exchange?
Pursuant to the provisions of Article 97 of Decree No. 155/2020/ND-CP, in order to become an exchange member of the Vietnam Stock Exchange, the following conditions must be met:
Conditions for becoming exchange members
1. The securities company is a clearing member or depository member and has a contract for clearing, payment authorization with a general clearing member; registers as exchange member that trades in debt instruments; The securities company is a depository member and is licensed to perform all securities trade operations as prescribed in Clause 1 Article 72 of the Law on Securities.
2. Requirements in terms of information technology infrastructure, professional processes and personnel under regulations of the Stock Exchange are fulfilled.
3. It is not put under control or special control as prescribed by law.
Thus, in order to become an exchange member, a securities company must be licensed to perform all securities trade operations such as securities brokerage; Proprietary trading; Securities underwriting; Securities investment consultancy. At the same time, it must meet the requirements in terms of infrastructure as well as professional skills to ensure the operation ability of the securities company.
What is the application for exchange membership?
Pursuant to the provisions of Article 98 of Decree No. 155/2020/ND-CP on the application for exchange membership of the Stock Exchange as follows:
- The application form No. 25 in the Appendix of Decree No. 155/2020/ND-CP.
- The license for establishment and securities operation.
- The certificate of clearing membership (if the applicant is a clearing member) or certificate of depository membership and the contract for clearing, payment authorization with a general clearing member (if the applicant is not a clearing member) or the certificate of depository membership (for trading debt instruments).
- The description of information technology infrastructure, professional processes and personnel.
After that, the securities company performs the steps in accordance with regulations on the procedures for registration of exchange membership as follows:
- Within 03 working days from the receipt of the satisfactory application, the Stock Exchange shall send a document requesting the application to complete the infrastructure, setup the system and connect software programs for data transmission and transaction test.
- Within 05 working days from the day on which the applicant fulfills the infrastructure requirements as inspected by the Stock Exchange, the applicant shall sign service contracts with the Stock Exchange and register an official trading date.
- Within 05 working days from the day on which the applicant fulfills the above conditions, the Stock Exchange shall issue a decision to grant the membership and announce this on its information disclosure medium.
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