Vietnam: Regulations on suspension of derivative trading activities of special trading members
According to Article 21 of Circular 58/2021/TT-BTC regulating the suspension of activities of special trading members in Vietnam:
1. The Exchange shall suspend trading activities of special trading members in the following cases:
a) The provision of clearing and settlement services by the special trading member (in case the special trading member is also a clearing member) is suspended under the State Securities Commission’s decision;
b) The special trading member’s clearing and settlement for derivative transactions (in case the special trading member is also a clearing member) are suspended under VSDCC’s decision;
c) The general clearing member that is providing clearing and settlement services for the special trading member has their clearing and settlement for derivative transactions suspended or their membership canceled under VSDCC’s decision (in case the special trading member is a non-clearing member);
d) The special trading member seriously and systematically violates their obligations as specified in Vietnam Exchange’s regulations;
dd) Other cases specified in Vietnam Exchange’s regulations;
e) Other cases reported by Vietnam Exchange and approved by the State Securities Commission.
2. The suspension period in the cases specified in Clause 1 of this Article is as follows:
a) With regard to the case specified in Point a Clause 1 of this Article, the suspension period is that of clearing and settlement services decided by State Securities Commission;
b) With regard to the case specified in Point b Clause 1 of this Article, the suspension period is that of clearing and settlement activities decided by VSDCC;
c) With regard to the case specified in Point c Clause 1 of this Article, activities of the special trading member shall be suspended up to 90 days or until they are provided with clearing and settlement services by another substitute clearing member (whichever comes first);
d) With regard to the case specified in Point d Clause 1 of this Article, the maximum suspension period is 90 days;
dd) With regard to the cases specified in Points dd and e Clause 1 of this Article, the suspension period shall comply with Vietnam Exchange’s regulations.
3. Procedures for suspension of activities of special trading members shall comply with Vietnam Exchange’s regulations.
Respectfully!
