What is request form for transferring securities to contribute to the Clearing Fund for the derivatives market in Vietnam?

What is request form for transferring securities to contribute to the Clearing Fund for the derivatives market in Vietnam?

In Form 03/QBT issued together with Decision 115/QD-VSD in 2022 (Expires on August 10, 2023), the sample request for transfer of securities contributed to the Clearing Fund for the derivatives market is specified as follows:

REQUIREMENTS FOR TRANSFERS OF
SECURITIES TO CONTRIBUTE TO THE COMPENSATION FUND FOR THE DERIVATIVES MARKET

To: Vietnam Securities Depository (VSD)

Request VSD to transfer the securities contributed to the Clearing Fund for the derivatives market from our securities depository account to the securities contributed to the Clearing Fund in VSD's name. Specific information is as follows:

- Derivatives clearing member registration number:

- Depository account number of derivatives clearing members:

- Name of transfer derivatives clearing member:

- Account number:

_______________________________________________________________________

Confirmation of Vietnam Securities Depository Center:

Effective date of securities transfer: ……………….

What is principle of the periodic additional contribution determined monthly on the basis of reassessing the size of the Clearing Fund for the derivatives market in Vietnam?

In Clause 2, Article 3, Regulations on management and use of clearing funds for the derivatives market at the Vietnam Securities Depository, issued together with Decision 115/QD-VSD in 2022 (Expires on August 10, 2023), stipulates additional contributions. Periodic replenishment is determined monthly on the basis of reassessing the size of the Clearance Fund for the derivatives market according to the following principles:

a) The size of the Clearance Fund is evaluated on the basis of transaction price data of futures contracts for at least 252 trading days. Determining the size of the Clearance Fund is based on transaction data on the derivatives market, the level of market risk and the method of testing risk tolerance (Stress test) stated in Appendix 1 promulgated together with this Regulation.

b) VSD requires clearing members to make additional contributions to the Clearing Fund when the total value of assets contributed to the Clearing Fund at the time of assessment is less than the size of the Clearing Fund determined according to the provisions of Point a of this Clause and not enough to ensure solvency in case 02 clearing members with the largest total position loss at any 01 settlement day during the calculation period simultaneously lose solvency. The specific contribution level of each clearing member is determined according to the provisions in Appendix 1 issued with this Regulation.

c) The value of assets contributed to the Clearance Fund at the time of assessment is determined on the basis of the discount rate of securities contributed to the Clearance Fund and the value of assets contributed to the Clearance Fund is valued according to regulations on Valuing the value of collateral assets as prescribed in the Regulations on clearing and settlement of derivative securities transactions at VSD.

According to what principles are extraordinary additional contributions of clearing members to the Clearing Fund for the derivatives market in Vietnam?

In Clause 3, Article 3, Regulations on management and use of clearing funds for the derivatives market at the Vietnam Securities Depository, issued together with Decision 115/QD-VSD in 2022 (Expires on August 10, 2023), stipulates extraordinary additions of clearing members' contributions to the Clearing Fund for the derivatives market according to the following principles:

a) For cases where clearing members are placed on warning status according to securities laws on financial safety and banking laws on capital safety: Within 01 working day from From the date of receiving the written notice from the competent authority or the clearing member's written report and information disclosure about being placed on warning status (whichever comes first), VSD shall Currently re-evaluating the size of the Clearing Fund to determine and request clearing members to make unusual additional contributions in case the contribution obligation required to be re-determined is larger than the contribution obligation required in the most recent month. Clearing members placed on warning status must complete the extraordinary additional contribution within 01 working day from the date of receiving the written notice from VSD.

b) For cases where clearing members' assets contributed to the Clearing Fund are frozen or confiscated by a competent state agency or by decision of the Court: Within 01 working day from the date Upon receipt of VSD's notice, the relevant clearing member is responsible for making an additional extraordinary contribution in cash with a minimum contribution value equal to the difference between the contribution obligation required by VSD in the most recent month and Value of assets (money and securities) contributed to the Clearing Fund remaining after being frozen or confiscated. The value of securities contributed to the remaining Clearing Fund is valued according to the regulations on valuation of collateral assets in the Regulations on clearing and settlement of derivative securities transactions at VSD.

c) For other cases: VSD re-determines the size of the Clearance Fund at the time an unusual event occurs and reports to the State Securities Commission for approval of the specific abnormal contribution level. The relevant clearing member is responsible for completing the extraordinary additional contribution in cash within 01 working day from the date of receipt of VSD's notice.

Best regards!