Guidelines on special trading member registration on Stock Exchange in Vietnam

Guidelines on special trading member registration on Stock Exchange in Vietnam - image from internet

Pursuant to Article 23 of the Decree 158/2020/ND-CP stipulating special trading member registration in Vietnam:

1. A commercial bank or FBB may apply for registration as a special trading member on SE when meeting all of the following requirements:

a) It is a special trading member on the government bond market of SE;

b) It has obtained a written approval from SBV for investment in derivatives;

c) It has entered into a clearing and settlement entrustment contract with a general clearing member in case of registration as a non-clearing member;

d) It has met the requirements laid down by SE pertaining to information technology infrastructure and operational procedures for derivative trading;

dd) It is not following procedures for consolidation, merger, or dissolution; it is not put under control or special control or subject to any decision on suspension of business operations issued by competent authorities.

2. An application for registration as a special trading member consists of:

a) The application form made using Form No. 06 in the Appendix enclosed herewith;

b) The SBV’s written approval for investment in derivatives;

c) The description of the applicant’s information technology infrastructure and operational procedures as prescribed by SE;

d) The clearing and settlement entrustment contract signed with a general clearing member in case of registration as a non-clearing member.

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 SE directly or by post.

4. Within 07 business days from the receipt of the application:

a) If the application is adequate and valid, SE shall request the applicant in writing to develop material facilities and install systems and software programs for transmitting and receiving trading data, testing trading system and performing other tasks for conducting transactions;

b) If the application is inadequate or invalid, SE shall request the applicant in writing to revise it.

5. Within 05 business days from the day on which the commercial bank or FBB completes preparations for trading, SE shall issue a decision to approve membership of special trading member and disclose information about the new special trading member on its media.

6. SE shall refuse to grant membership of special trading member in the following cases:

a) The applicant fails to meet membership requirements;

b) The application for registration as special trading member contains forged documents or false information;

c) The commercial bank or FBB fails to complete procedures for obtaining a decision to approve membership of special trading member within 90 days from the day on which it receives a document from SE as prescribed in Clause 4 of this Article.

SE shall send a notice, in which reasons for refusal must be indicated, to the applicant, and disclose relevant information on its media.

7. Suspension of trading activities of a special trading member, termination or cancellation of membership of a special trading member, actions against violations committed by the special trading member and other issues related to the special trading member shall comply with the Minister of Finance’s regulations and SE’s regulations.

8. A commercial bank or FBB may apply for re-registration as a special trading member only after 02 years from the date of voluntary cancellation of membership or 03 years from the date of compulsory cancellation of membership.

Best regards!