Procedures for voluntary termination of derivative trading operations in Vietnam

According to the Decree No. 158/2020/NĐ-CP of the Vietnam’s Government, The derivative trading organization that wishes to terminate its derivative trading operations shall submit an application to the State Securities Commission of Vietnam (SSC). The procedures for voluntary termination of derivative trading operations are conducted as following:

- The application shall be submitted to SSC directly, by post or through the online public service system as regulated by the Minister of Finance. The application consists of:

+ The application form made using Form No. 03 in the Appendix enclosed herewith;

+ The resolution of the General Meeting of Shareholders, Board of Members or the owner’s decision on termination of derivative trading operations and approval for the plan for settlement of relevant issues;

+ The plan for settling unexpired derivative trading contracts, including the plan for settling accounts and margins of clients.

Note: A full set of original application documents is required. If a copy of document is submitted, it must be a copy extracted from master register or a certified copy.

- Within 05 business days from the receipt of the application, SSC shall request the applicant in writing to revise the application (if necessary).

- Within 07 business days from the receipt of the adequate and valid application, SSC shall give a written permission to follow procedures for voluntary termination of derivative trading operations. If an application is refused, SSC shall provide written reasons for such refusal.

- From the receipt of SSC’s permission to follow procedures for voluntary termination of derivative trading operations:

+ Within 24 hours, the derivative trading organization shall disclose information about the following of procedures for voluntary termination of derivative trading operations;

+ Within 05 business days, the securities company shall disclose information about the plan, time limit and roadmap for settling unexpired contracts and notify the plan to each client. The time limit for settling unexpired contracts must include a minimum period of at least 45 days provided for clients to settle their positions and transfer margins to other accounts but shall not exceed 60 days from the date of information disclosure.

More details at the Decree No. 158/2020/NĐ-CP of the Vietnam’s Government, effective from January 01, 2021.

Ty Na

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