What are regulations on the position offset on the trading account at the Vietnam Securities Depository Center (VSD)?

What are regulations on the position offset on the trading account at the Vietnam Securities Depository Center (VSD)?

Based on Article 18 of the Regulations on Clearing and Settlement of Derivative Securities Transactions at the Vietnam Securities Depository Center (VSD), issued together with Decision 61/QD-VSD in 2022, the following regulations apply to position offset on trading accounts at VSD:

1. VSD offsets positions on trading accounts of clearing members and their clients based on the principle that offsetting positions of the same futures contract with the same expiration date on the same trading account are automatically offset against each other to determine the net position of the futures contract on that trading account, except for the general trading account as stipulated in Clause 2 of this Article.

2. VSD only offsets offsetting positions on the general trading account when receiving a request from the clearing member.

3. The procedure for offsetting positions on the general trading account is carried out in accordance with the instructions in Appendix 9 attached to this Regulation.

What are regulations on the position offset on the trading account at the Vietnam Securities Depository Center (VSD)? - Source: Internet

What are regulations on the position profit and loss payment at VSD?

Based on Article 19 of the Regulations on Clearing and Settlement of Derivative Securities Transactions at the Vietnam Securities Depository Center (VSD), issued together with Decision 61/QD-VSD in 2022, the regulations on the position profit and loss payment at VSD are as follows:

1. Settlement of profit and loss positions for clearing members and their clients is made in cash on the next business day after VSD notifies the profit and loss positions.

2. Principles for determining profit and loss positions:

a) The value of the profit and loss position payment is determined in accordance with the principles set forth in Article 9, Clause 1 of Circular 58/2021/TT-BTC.

b) The obligation to pay profit and loss positions is determined separately for each investor account, and then offset to determine the net payment obligation for each clearing member.

3. The results of the calculation of the daily net payment obligation for profit and loss positions for each clearing member will be sent by VSD to the clearing members and the commercial bank (NHTT) to make the payment on the payment date, in accordance with the principle that the clearing member on the pay side transfers enough money to VSD to pay the clearing members on the receive side.

4. The payment of profit and loss positions is made between the payment deposit accounts in the name of VSD opened for each clearing member and the payment deposit account of VSD at NHTT. The clearing member is responsible for completing the allocation of position profit money to investors (in case the investor has profit) on the payment date, after NHTT completes the payment of profit and loss positions.

5. At the end of the business day, after all payment activities have been completed, if there is a balance on the clearing member's payment deposit account (due to the clearing member transferring more than the payment obligation), NHTT will automatically transfer the balance of money to the account for the return of margin that the clearing member has registered.

6. The procedures and procedures for settlement of profit and loss positions are carried out in accordance with the instructions in Appendix 9 attached to this Regulation.

What are regulations on the settlement of index futures contracts at VSD?

Article 20 of the Regulation on Clearing and Settlement of Derivative Securities Transactions at the Vietnam Securities Depository Center, issued together with Decision 61/QD-VSD in 2022, stipulates the settlement of index futures contracts at the Vietnam Securities Depository Center as follows:

The settlement of index futures contracts is completed when the settlement of profit and loss positions of the last trading day is completed.

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