Vietnam: Cases of suspension of clearing and settlement activities of clearing members

Under Clause 1 Article 27 of Circular 58/2021/TT-BTC on the suspension of clearing and settlement activities of clearing members in Vietnam:

1. The Vietnam Securities Depository and Clearing Corporation shall issue decision to suspend clearing and settlement activities of a clearing member in the following cases:

a) The clearing member becomes insolvent and their deficit exceeds the sum of the margin which can be used at the time the clearing member is determined insolvent and assets contributed to the clearing fund of that clearing member;

b) The clearing member fails to fully make the required contribution to the clearing fund within 10 days from the deadline for provision of such contribution notified by the Vietnam Securities Depository and Clearing Corporation;

c) The clearing member fails to fully repay the funds from the clearing fund, risk management fund and lawful funding sources of the Vietnam Securities Depository and Clearing Corporation, which are used for fulfilling their settlement obligations, within 05 working days from the day on which such funds are used;

d) The clearing member fails to fully pay the compensation amounts as prescribed in Point c Clause 4 Article 11 hereof within 02 working days from the payment deadline notified by the Vietnam Securities Depository and Clearing Corporation;

dd) The clearing member fails to take actions to reduce their positions, in case their position limit is exceeded, within 05 working days from the receipt of notice of violation from the Vietnam Securities Depository and Clearing Corporation;

e) The clearing member fails to provide margin within 03 working days from the receipt of notice from the Vietnam Securities Depository and Clearing Corporation;

g) The clearing member receives 02 decisions to reprimand, or more, within a month or 02 consecutive months from the Vietnam Securities Depository and Clearing Corporation;

h) The clearing member’s clearing and settlement activities are suspended under State Securities Commission’s decision;

i) Other cases specified in the Vietnam Securities Depository and Clearing Corporation’s regulations;

k) Other cases reported by the Vietnam Securities Depository and Clearing Corporation and accepted by State Securities Commission.

Sincerely!