Vietnam: Invalid bid submission in the open market operation

According to Circular No. 42/2015/TT-NHNN of the State Bank of Vietnam, a member’s bid submission is considered invalid in the following cases:

- The offering interest rate has not been rounded up to decimals with 2 numerals following the decimal point.

- The total volume of financial instruments in a bid submission is lower than VND 1,000,000,000.

- The member selling financial instruments does not have, or does not have sufficient financial instruments deposited at the State bank as required.

- The remaining term to maturity of financial instruments registered for sale is shorter than the repo/reverse repo period.

- The financial instruments registered for sale are not in the list of financial instruments to be purchased or sold by the State bank or the financial instruments registered for sale after the registered final maturity date.

- The specific volume of financial instruments registered for sale by the members does not match the specific volume eligible for depositing specified in Point d Clause 1 Article 10 hereof (in case the State bank purchases them).

- The quantity offered to bid is larger than the quantity of financial instruments to be purchased or sold of the State bank (in case the quantity of financial instruments to be purchased or sold of the State bank is announced).

- etc.

View contents of the bid submission at Circular No. 42/2015/TT-NHNN of the State Bank of Vietnam, which takes effect from April 30, 2016.

- Khanh Chi -

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