Requirements for a commercial bank to apply for registration as a special trading member in Vietnam

According to Clause 1 Article 23 of the Decree No. 158/2020/NĐ-CP of the Vietnam’s Government, a commercial bank or foreign branch banks (FBB) may apply for registration as a special trading member on Stock Exchange (SE) when meeting all of the following requirements:

- It is a special trading member on the government bond market of SE;

- It has obtained a written approval from the State Bank of Vietnam (SBV) for investment in derivatives;

- It has entered into a clearing and settlement entrustment contract with a general clearing member in case of registration as a non-clearing member;

- It has met the requirements laid down by SE pertaining to information technology infrastructure and operational procedures for derivative trading;

- It is not following procedures for consolidation, merger, or dissolution; it is not put under control or special control or subject to any decision on suspension of business operations issued by competent authorities.

Thus, an application for registration as a special trading member consists of:

- The application form made using Form No. 06 in the Appendix enclosed herewith;

- The SBV’s written approval for investment in derivatives;

- The description of the applicant’s information technology infrastructure and operational procedures as prescribed by SE;

- The clearing and settlement entrustment contract signed with a general clearing member in case of registration as a non-clearing member.

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. The application shall be submitted to SE directly or by post.

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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