Conditions for becoming special exchange members in Vietnam

According to Point b Clause 1 Article 47 of the Law on Securities 2019 of Vietnam, commercial banks, foreign branch banks (FBB) and other organizations recognized as special trading members by Vietnam Stock Exchange (VSE).

To become a special trading member, an applicant must meet the requirements listed in Article 99 of the Decree No. 155/2020/NĐ-CP of the Vietnam’s Government, specifically:

- Be a commercial bank or FBB that has a contributed or provided charter capital not lower than the legal capital and is not put under special control as prescribed by regulations of law on credit institutions;

- Be a depository member or open an account directly at Vietnam Securities Depository and Clearing Corporation (VSDCC);

- Fulfill the requirements in terms of information technology infrastructure, professional processes and personnel under regulations of the Stock Exchange.

Note: Special exchange members may only trade in their own debt instruments.

Application for special exchange membership

- The application form No. 25 in the Appendix hereof;

- The establishment and operation license or the license for branch establishment issued by a competent authority;

- The certificate of depository membership or the service contract between VSDCC and the bank or FBB on the direct account opening;

- The description of information technology infrastructure, professional processes and personnel.

Procedures for registration of special exchange membership

Within 03 working days from the receipt of the satisfactory application, the Stock Exchange shall send a document requesting the application to complete the infrastructure, setup the system and connect software programs for data transmission and transaction test.

Within 05 working days from the day on which the applicant fulfills the infrastructure requirements as inspected by the Stock Exchange, the applicant shall sign service contracts with the Stock Exchange and register an official trading date.

Within 05 working days from the day on which the applicant fulfills the conditions specified in Clause 1 and Clause 2 of this Article, the Stock Exchange shall issue a decision to grant the membership and announce this on its information disclosure medium.

More details at the Decree No. 155/2020/NĐ-CP of the Vietnam’s Government, effective from January 01, 2021.

Le Thanh

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