What is withdrawal of assets contributed to the Clearing Fund for derivatives market at Vietnam Securities Depository?

What is withdrawal of assets contributed to the Clearing Fund for derivatives market at Vietnam Securities Depository?

In Section II, Appendix 2, Process of deposit, withdrawal, separate management and return of assets contributed to the clearing fund promulgated together with Decision 115/QD-VSD in 2022 stipulating withdrawal of assets contributed to the Clearing Fund for derivatives market at Vietnam Securities Depository is as follows:

1. Clearing members send VSD 02 copies of the request for withdrawal of assets contributed to the Clearing Fund using Form 01/QBT issued together with this Regulation.

2. In case the request for withdrawal of assets contributed to the Clearing Fund meets the provisions of Clause 1, Article 6 of this Regulation, within 01 working day, VSD shall:

a) For withdrawal of Clearing Fund contribution: VSD sends a request to the paying bank to transfer money to clearing member's account registered with VSD in the form of MT103- request for partial payment /full money from clearing fund to clearing members.

b) For withdrawal of securities contributed to the Clearing Fund: VSD shall transfer the contributed securities from the securities account contributed to the Clearing Fund to the clearing member's depository account. After the transfer is successful, VSD sends a confirmation message to the clearing member.

3. In case the request for withdrawal of assets contributed to the Clearing Fund does not satisfy the provisions of Clause 1, Article 6 of this Regulation, VSD shall send a notice of refusal, clearly stating the reason.

What is determination of value of contributed assets to the Clearing Fund in cash and securities at Vietnam Securities Depository?

In Subsection 1, Section III, Appendix 2, Process of deposit, withdrawal, separate management and return of assets contributed to the clearing fund promulgated together with Decision 115/QD-VSD in 2022 on determination of value of contributed assets to the Clearing Fund in cash and securities at Vietnam Securities Depository as follows:

1. Determining the value of assets contributed to the Clearing Fund in cash and securities

- The value of assets contributed to the Clearing Fund in cash is the amount of the clearing member's contribution to the Clearing Fund at the time of determination.

- The value of assets contributed to the Securities Clearing Fund (if any) is determined according to the following formula:

In there:

V CK is the value of contribution to the Clearing Fund by securities.

CK i is the number of securities contributed to Clearance Fund code i at the specified time.

Pi is the closing price of security i at the previous evaluation period of the clearing fund.

Hi is the discount rate for securities i (according to the regulations on discount rate for margin securities in the Regulation on clearing and settlement of derivatives transactions at VSD) at the evaluation period of the immediate clearing fund size.

(i = j → m are securities codes contributing to the Clearing Fund)

What is separate management of value of contributed assets to the Clearing Fund for derivatives market at Vietnam Securities Depository?

In Subsection 2, Section III, Appendix 2, Process of deposit, withdrawal, separate management and return of assets contributed to the clearing fund promulgated together with Decision 115/QD-VSD in 2022 stipulating separate management of value of contributed assets to the Clearing Fund for derivatives market at Vietnam Securities Depository are as follows:

2. Separately managing the value of assets contributed to the Clearing Fund

VSD performs separate management of the value of assets contributed to the Clearing Fund by clearing members as follows:

a) For the value of assets contributed to the Clearing Fund in cash: VSD sends an official dispatch to the paying bank to request the transfer of money from VSD's Clearing Fund money account at the paying bank to the money account provided by VSD opened to serve the separate management of contributions to the Clearing Fund (hereinafter referred to as segregated money account).

b) For the value of assets contributed to the Clearing Fund by securities: VSD transfers securities from the securities account contributed to the Clearing Fund to a securities account in VSD's name opened to serve the segregated management of securities contributed to the Clearing Fund (hereinafter referred to as segregated securities account).

What is return of contributed assets to the Clearing Fund for derivatives market at Vietnam Securities Depository?

In Section IV, Appendix 2, Process of deposit, withdrawal, separate management and return of assets contributed to the clearing fund promulgated together with Decision 115/QD-VSD in 2022 stipulating return of contributed assets to the Clearing Fund for derivatives market at Vietnam Securities Depository as follows:

VSD shall return the assets contributed to the Clearing Fund (the remaining payable amount) as determined at Point a, Clause 9, Article 8 of this Regulation as follows:

a) For money: VSD has an official dispatch to the bank where VSD opens a separate money account to request the transfer of money from the segregated money account to the account to receive the refund of the registered clearing member's contribution. 

b) For securities: VSD transfers securities from a segregated securities account to a clearing member's depository account.

What are rights of clearing members for the Clearing Fund for derivatives market at Vietnam Securities Depository?

In Clause 1, Article 10 of the Regulation 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, defining rights of clearing members for the Clearing Fund for derivatives market at Vietnam Securities Depository is as follows:

1. Rights of clearing members:

a) To receive information about the value of the contributed assets, the amount used, the interest on using the allocated clearing fund (if any), the interest on the clearing fund deposit at the allocated clearing bank, and arising rights to securities contributed to the Clearing Fund by clearing members themselves.

b) To withdraw the assets contributed to the Clearing Fund according to the provisions of Point b, Clause 2, Article 16 of Circular No. 58/2021/TT-BTC and Clause 1, Article 6 of this Regulation.

Best Regards!