What are rights and duties of a market maker regarding issuance and trading of government debt instruments on securities market in Vietnam?

What are rights and duties of a market maker regarding issuance and trading of government debt instruments on securities market in Vietnam?

Pursuant to Article 27 of the Decree 95/2018/NĐ-CP stipulating rights and duties of a market maker regarding issuance and trading of government debt instruments on securities market in Vietnam as follows:

1. A market maker shall have the following rights:

a) Being the sole entity entitled to participate in issues, repurchases or swaps of government debt instruments by bidding;

b) Being given priority in application for registration as a lead underwriter in each issue of government bonds or national development bonds through underwriting;

c) Attending periodic exchanges about bond issuance and orientations for bond market development policies with the Ministry of Finance;

d) Request the State Treasury to issue government bonds for ensuring the market liquidity as prescribed in Article 20 herein;

dd) Being given priority in negotiation on repurchase or swap of government debt instruments according to the Ministry of Finance’s notification.

2. A market maker must discharge the following duties:

a) Bid at bidding sessions for government debt instruments according to the Ministry of Finance's notification in each period;

b) Annually purchase (including for customers) and trade in government debt instruments on the primary and secondary market with the quantity prescribed by Ministry of Finance in each period;

c) Fulfill duties according to firm commitments to offer daily bid and ask prices of standard debt instruments according to the Ministry of Finance’s notification in each period.

d) Make full payment for government debt instruments purchased on the agreed schedule;

dd) Submit annual reports and 6-month reports, made according to the Form No. 03 and Form No. 04 stated in the Appendix enclosed herewith.

What are regulations on termination of eligibility of a market maker regarding issuance and trading of government debt instruments on securities market in Vietnam?

Pursuant to Article 28 of the Decree 95/2018/NĐ-CP stipulating termination of eligibility of a market maker regarding issuance and trading of government debt instruments on securities market in Vietnam as follows:

1. The eligibility of a market maker shall be taken into consideration for termination in the following cases:

a) The market maker has its business license revoked or withdrawn;

b) Its business is suspended or it is dissolved or declared bankrupt;

c) Its business is put under a special control by a competent authority;

d) It submits an application for voluntary termination of its eligibility;

dd) It fails to satisfy the eligibility requirements as specified in Clause 4 Article 26 herein.

2. The Ministry of Finance shall inform the market maker in writing of its eligibility termination, and publish information concerning such eligibility termination on its website.

3. A market maker whose eligibility is terminated as prescribed in Point d or Point dd Clause 1 of this Article shall not apply for registration as a market maker within 02 years from the date of eligibility termination.

Which changes of market makers are compulsory to report to Ministry of Finance regarding issuance and trading of government debt instruments on securities market in Vietnam?

Pursuant to Article 29 of the Decree 95/2018/NĐ-CP stipulating changes compulsorily reported to Ministry of Finance regarding issuance and trading of government debt instruments on securities market in Vietnam as follows:

Within 10 working days from the occurrence of any of the following changes, the market maker must inform the Ministry of Finance in writing:

1. The market maker has its business license revoked or withdrawn.

2. It is fully or partially divided, consolidated or merged, has its business type changed or its business suspended, is dissolved or declared bankrupt.

3. It fails to achieve prudential indicators as regulated by relevant laws.

4. Its business is put under a special control by a competent authority in accordance with applicable laws.

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