How to blockade and release margin securities for derivative trading of investors at the Vietnam Securities Depository?

How to blockade and release margin securities for derivative trading of investors at the Vietnam Securities Depository?

Pursuant to Section A, Appendix 5 of the Information exchange process between VSD and Hanoi Stock Exchange, clearing members about warning, suspending and restoring transactions for accounts that violate margin usage ratio, violating the position limit issued together with the Decision 61/QD-VSD in 2022 stipulating as follows:

- Clearing member sends a request to blockade/release securities on the current account at clearing member (proprietary 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 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 -Refuse to blockade/release margin securities.

What are procedures for depositing a clearing member's deposit with the Vietnam Securities Depository?

Pursuant to Section B.I, Appendix 5 of the Information exchange process between VSD and Hanoi Stock Exchange, clearing members about warning, suspending and restoring transactions for accounts that violate margin usage ratio, violating the position limit issued together with the Decision 61/QD-VSD in 2022 stipulating procedures for depositing a clearing member's deposit with the Vietnam Securities Depository as follows:

1. Deposit payment process

a. When the clearing member successfully makes a payment to the member's margin deposit account at NHTT, the Bank will send a Credit note to VSD in the form of MT910 - Credit note to the derivative margin account.

b. In case the information on the MT910 email sent by NHTT to VSD matches the information managed by VSD, VSD shall:

- Record the increase in deposit for the respective member's deposit account.

- Send Credit to clearing members in the form of MT910 - Credit report for derivatives margin accounts.

c. In case the investor's margin account information on MT910 email sent by NHTT to VSD does not match the information on VSD's system (due to not being registered on VSD's system or wrong account number), VSD creates a MT198 - Report the error to NHTT/NAK so that NHTT will refund the clearing member.

2. Procedure for depositing securities for margin

a. Clearing member sends a request to transfer securities in the form of electricity MT542 - Request for deposit of securities on margin.

b. VSD checks the transfer request:

- In case the balance is sufficient, the stock code is in the list of securities approved for margin: VSD makes a securities transfer and sends the clearing member a confirmation message in the form of an email MT546 - Notice of reduction of balance securities on investor's account/MT544 - Notice of increasing investor's margin securities balance 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 MT548 - Rejects the request to submit margin securities/NAK.

What are procedures for the deposit withdrawal of clearing members with the Vietnam Securities Depository Center?

Pursuant to Section B.II, Appendix 5 of the Information exchange process between VSD and Hanoi Stock Exchange, clearing members about warning, suspending and restoring transactions for accounts that violate margin usage ratio, violating the position limit issued together with the Decision 61/QD-VSD in 2022 stipulating procedures for the deposit withdrawal of clearing members with the Vietnam Securities Depository Center as follows:

1. Deposit withdrawal process

a. When there is a need to withdraw the deposit, the clearing member sends a deposit withdrawal request to VSD in the form of MT103 - Request for withdrawal of margin in cash.

b. VSD performs the validity check of the request:

(i) Where the clearing member's request is valid:

- VSD sends a request to NHTT to perform clearing member's deposit withdrawal request in the form of MT103 - Request for withdrawal of margin.

- 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 electricity - Notice of successful withdrawal.

(ii) In case the clearing member's request is invalid, VSD will send the clearing member a notice of rejection of the deposit withdrawal request in the form of MT598 -Reject the deposit withdrawal request.

2. The process of withdrawing margin securities.

a. When there is a need to withdraw margin securities, clearing members send a request to withdraw margin to VSD in the form of MT542 - Request for withdrawal of margin in securities.

b. VSD performs the validity check of the request:

(i) In case the clearing member's request is valid, VSD shall:

- Transfer the number of securities requested to be withdrawn from the clearing member's margin securities account at VSD to the member's margin securities account.

- Send confirmation to clearing members about successful withdrawal of margin securities in the form of electricity MT546 - Notice of successful withdrawal of securities.

(ii) In case the clearing member's request is invalid, VSD will send the clearing member a notice of rejection of the request to withdraw margin securities in the form of MT548 - Reject the request to withdraw margin securities.

Best regards!