What are regulations on error correction after securities transactions in Vietnam?

What are regulations on error correction after securities transactions in Vietnam?

Pursuant to Article 6 of the Regulation on clearing and settlement of securities transactions at the Vietnam Securities Depository issued together with Decision 109/QD-VSD in 2022 stipulating the correction of errors after securities transactions as follows:

1. VSD corrects errors after the transaction as prescribed in Article 38 of Circular No. 05/2015/TT-BTC dated January 15, 2015 of the Ministry of Finance guiding the registration, depository, clearing and settlement securities transaction accounting (hereinafter referred to as Circular No. 05/2015/TT-BTC).

2. VSD will correct errors after the transaction for the Member's error due to failure to control the customer's securities balance, resulting in a lack of securities for payment. The member is responsible for paying the customer's error transaction.

3. Correction of transaction errors is made for all orders placed incorrectly or incorrectly, except for the case of placing orders with the wrong quantity, which will be partially corrected if the Member's wrong orders have transactions with the number of matched securities is equal to or smaller than the order placed by the customer.

4. Post-transaction error correction records include the following documents:

a. Application for correction of errors after the transaction (Form 02/TTBT of this Regulation);

b. Confirm transaction results (Form 01/TTBT of this Regulation);

c. Confirmation of the Member being the Depository Bank on the error transaction (in case the investor is a customer opening a depository account at the Depository Bank and placing orders through the Securities Company) (Form 01/TTBT of this Regulation);

d. Customer's order slip; Detailed order matching book information of the Member is printed from the securities trading system.

5. Correction files must be sent to VSD no later than 8:30 a.m. on T+1 for transactions with a T+1 payment date and at 2:30 p.m. on T+1 for transactions with a T+2 payment date to ensure ensure that corrections are made prior to settlement of such transactions.

6. VSD does not make corrections for invalid correction records or error correction records submitted by members later than the prescribed time limit. The Member shall be fully liable for any loss arising from the fault of the Member. In the event that failure to correct errors results in a Member's transaction being temporarily insolvent, the transaction will be rejected for non-payment of transactions in accordance with Article 19 of this Regulation.

7. Immediately after completing post-trading error correction, VSD sends a Post-trading Error Correction Notice (Form 03/TTBT of this Regulation) to the Stock Exchange, the Member requests for error correction.

How to handle self-trading securities transaction error in Vietnam?

Pursuant to Article 7 of the Regulation on clearing and settlement of securities transactions at the Vietnam Securities Depository issued together with Decision 109/QD-VSD in 2022 stipulating regulations on handling self-trading securities transaction error in Vietnam as follows:

1. VSD shall handle proprietary transaction errors in the following cases:

a. Members, organizations that open accounts directly enter the wrong number of proprietary trading accounts.

b. The securities company entered the wrong order, leading to the lack of securities for payment.

c. ETF founders are missing securities or ETF certificates for payment due to an unsuccessful swap transaction.

2. Handling self-trading securities transaction error

a. In case of incorrect proprietary trading account number, VSD will make adjustments to the correct proprietary trading account number of the Member or Organization opening the direct account.

b. In case the securities company enters the wrong order leading to the lack of securities for payment or the ETF founder lacks securities/ETF certificates for payment due to an unsuccessful swap transaction, the securities company/Successor. The relevant fund founders must use the securities loan mechanism to support payment as prescribed in Article 16 of this Regulation.

3. A member or organization that opens a direct account with a proprietary transaction error must submit a written request for handling transaction errors (Form 04/TTBT of this Regulation for the cases specified at Point a and Form 05/). TTBT of this Regulation for the case specified at Points b, c, Clause 1 of this Article) no later than 8:30 a.m. on T+1 for corporate bond transactions and at 2:30 p.m. on T+1 for stock transactions. bonds, fund certificates, warranties to ensure error handling is performed before settlement of such transactions.

4. Immediately after completing the handling of proprietary trading transaction errors specified at Point a, Clause 2 of this Article, VSD shall send a Notice of handling transaction errors (Form 06/TTBT of this Regulation) to the Stock Exchange, Members, and Groups. The account opening organization directly requested error handling.

How to confirm payment for stock transactions, fund certificates, warrants when performing securities transactions in Vietnam?

Pursuant to Article 8 of the Regulation on clearing and settlement of securities transactions at the Vietnam Securities Depository issued together with Decision 109/QD-VSD in 2022 stipulating regulations on confirming payment for stock transactions, fund certificates, warrants when performing securities transactions in Vietnam as follows:

1. The party member that is required to pay for transactions of stocks, fund certificates and warrants is responsible for certifying that there is enough or insufficient money for payment no later than 16:30 on T+1 day for stock transactions, fund certificates, warrants secured in the form of electronic documents through the electronic communication portal.

2. In case the Member confirms the lack of money to pay for securities transactions, no later than 5:00 p.m. on T+1, the Member must determine and send a written notice to VSD, specifying the shortfall amount and the list of investors of short-term securities.

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