What is registration of clearing members at Vietnam Securities Depository?

What is registration of clearing members at Vietnam Securities Depository?

In Article 2, Regulations on clearing members of derivatives at the Vietnam Securities Depository, issued together with Decision 84/QD-VSD in 2022, there are regulations on registration of clearing members at Vietnam Securities Depository are as follows:

1. Organizations registering to be clearing members shall submit a clearing member registration dossier to VSD according to the provisions of Clauses 2 and 3, Article 30 of Decree No. 158/2020/ND-CP dated December 31, 2020 of Government on derivatives and derivatives market (hereinafter referred to as Decree 158/2020/ND-CP), in which:

a) An explanation that meets the requirements of the business process according to Form 01/PS-TVBT issued together with this Regulation (hereinafter referred to as the Business Note for short).

b) An explanation meeting the requirements for information technology infrastructure according to Form 02/PS-TVBT issued together with this Regulation (hereinafter referred to as the Information Technology Note for short).

2. Within 07 working days from the date of receipt of the clearing member registration dossier, VSD shall:

a) If the application is complete and valid, VSD shall issue a written approval in principle to the clearing member registration for the organization registering to be a clearing member according to Form 03/PS-TVBT issued together with the Regulations. This requires the organization to register as a clearing member to contribute to the clearing fund for the derivatives market (hereinafter referred to as the Clearing Fund for short), to connect the system, to perform testing with the system on clearing and settlement of VSD.

b) In case the dossier is incomplete or invalid, VSD shall send a written request to the organization registering as a clearing member to amend and supplement in accordance with regulations.

3. After completing the tasks required in Clause 2 of this Article, the organization registering to be a clearing member shall send to VSD 02 copies of the account registration for deposit withdrawal, payment and refund of contributions. The clearing fund is made according to Form 04/PS-TVBT issued together with this Regulation.

4. Within 01 working day from the date the organization registers to be a clearing member, complete the tasks specified at Point a, Clause 2 of this Article and VSD receives the complete dossier as prescribed in Clause 3, this Article, VSD issues the Certificate of clearing member for derivatives according to Form 05/PS-TVBT and signs a contract to provide clearing and settlement services for derivatives transactions with the clearing member according to Form 06/PS-TVBT issued together with this Regulation.

5. After being granted the Certificate of derivative clearing member by VSD, the clearing member uses the same number and initials of the depository member as the number and abbreviated name for the clearing member.

What is change of registration information of clearing members at Vietnam Securities Depository?

In Clause 1, Clause 2, Clause 3, Article 3 of the Regulations on clearing members of derivatives at the Vietnam Securities Depository, issued together with Decision 84/QD-VSD in 2022, there are regulations on changes in information Information on registration of clearing members at the Vietnam Securities Depository Center is as follows:

1. Clearing member must send a written notice to VSD to update information on registration file for clearing member in case of information change:

a) The list of members of the Board of Directors who are assigned to be in charge of clearing and settlement of derivatives transactions at Point 5, Section I of the Business Note.

b) Points 2, 3, 4, 5, 6, Section II of the Information Technology Note.

2. Clearing member must send a written request to VSD to approve the change of information in the registration file for clearing member in case of information change:

a) Section II of the business explanation.

b) Point 1, Section II of the Information Technology Note.

3. Clearing members must send a written notice and request VSD to issue the certificate of derivatives clearing member to amend in case of information change:

a) Name of organization, head office, legal representative, charter capital.

b) Certificate of eligibility to provide clearing and settlement services for derivatives transactions, issued by the State Securities Commission (hereinafter referred to as the State Securities Commission for short).

c) Type of clearing member.

What are procedures for changing information of registration file for clearing members at the Vietnam Securities Depository? 

In Clause 4, Article 3 of the Regulations on clearing members of derivatives at the Vietnam Securities Depository, issued together with Decision 84/QD-VSD in 2022, there are regulations on procedures for changing information of registration file for clearing members at the Vietnam Securities Depository are as follows:

4. Procedure for changing information of registration file for clearing members

a) For the case specified in Clause 1 of this Article: The clearing member shall send to VSD a written notice of the changed information content within 07 working days from the effective date of the change.

b) For the case specified at Point a, Clause 2 of this Article: Within 07 working days from the date of receipt of a complete and valid dossier, and after the change, the professional process meets the processing requirements. managing the clearing and settlement of derivative securities transactions between clearing members and VSD, VSD has written approval of the change. In case of refusal, VSD shall have a written explanation clearly stating the reason.

c) For the case specified at Point b, Clause 2 of this Article: The process and time for handling the change shall comply with the regulations on guiding participants to connect to VSD's online communication portal for clearing activities, payment of derivative securities.

d) For the case specified at Point a, Clause 3 of this Article: Within 05 working days from the effective date of the change, the clearing member must send a written notice to VSD enclosed with a dossier of certification. of the competent authority for the changed content (if any), VSD shall issue the revised Clearing Member Certificate to the clearing member according to Form 07/PS-TVBT issued together with this Regulation in within 2 working days from the date of issuing the amended certificate of depository members to clearing members.

dd) For the case specified at point b, clause 3 of this Article: VSD shall issue a modified clearing member certificate to a clearing member according to Form 07/PS-TVBT issued together with this Regulation within 02 working days from the date of receipt of the written notice of the clearing member together with a certified copy of the certificate of eligibility to provide derivatives clearing and settlement services issued by the State Securities Commission. 

e) For the case specified at point c, clause 3 of this Article: VSD issues a certificate of clearing member of derivatives, modified according to Form 07/PS-TVBT issued together with this Regulation, to clearing members. within 03 working days from the date the clearing member completes the following tasks:

- Send VSD a written request to change the type of member together with a certified copy of the document issued by the State Securities Commission related to the change of the type of member;

- To make additional payment to the clearing fund (if it is insufficient compared to regulations) when changing from a direct clearing member to a general clearing member;

- Liquidate all positions, escrow assets and fulfill payment obligations on accounts of non-clearing members and customers of non-clearing members (if any) in case of changes from members general clearing to direct clearing members. The liquidation is done through a position closing transaction or a request for a transfer to settle the position and margin assets in accordance with the provisions of VSD's Regulation on clearing and settlement of derivatives transactions.

Best Regards!