Vietnam: What are the regulations on cancellation of membership of clearing members?

According to Article 28 of Circular 58/2021/TT-BTC on cancellation of membership of clearing members in Vietnam:

1. The Vietnam Securities Depository and Clearing Corporation shall cancel membership of a clearing member in the following cases:

a) The clearing member submits an application for voluntary cancellation of membership which is approved by the Vietnam Securities Depository and Clearing Corporation;

b) A clearing member is subject to compulsory cancellation of membership.

2. The clearing member shall be subject to compulsory cancellation of membership as prescribed in Point b Clause 1 of this Article in the following cases:

a) The clearing member fails to rectify the causes of suspension as requested by the Vietnam Securities Depository and Clearing Corporation and State Securities Commission by the end of the suspension period of clearing and settlement activities as prescribed in Clause 2 Article 27 hereof;

b) Clearing and settlement activities of the clearing member are voluntarily or compulsorily terminated under State Securities Commission’s decision as prescribed in Article 12 and Article 13 of Decree No. 158/2020/ND-CP ;

c) The membership of trading member or special trading member of the clearing member is cancelled under VNX’s decision;

d) Other cases as prescribed by the Vietnam Securities Depository and Clearing Corporation;

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

3. The membership of a clearing member shall be only canceled after that clearing member has completed the transfer of positions and margin for closing clients’ accounts, liquidating positions and fulfilling settlement obligations on their proprietary trading account (if any) and fulfilled all obligations to the Vietnam Securities Depository and Clearing Corporation.

4. Required documents and procedures for cancellation of membership of clearing members shall comply with the Vietnam Securities Depository and Clearing Corporation’s regulations.

Sincerely!