Recently, the Government of Vietnam has issued Decree No. 158/2006/NĐ-CP detailing the implementation of the Commercial Law regarding goods purchase and sale through the Goods Exchange.
According to Article 39 of Decree No. 158/2006/NĐ-CP of Vietnam’s Government, trading collateral at the Goods Exchange is prescribed as follows:
- The Goods Exchange specifies the initial collateral level for placement of trading orders, which, however, must not be lower than 5% of the value of each trading order.
- When placing trading orders through the Goods Exchange, trading members shall ensure that the balance of their accounts opened at the Payment Center satisfies the conditions on the trading collateral level for order placement.
- Within a time limit specified in the operation charter of the Goods Exchange, trading members shall add collateral amounts upon any price fluctuation. If collateral amounts are not added in time, the Goods Exchange may finally settle contracts with those trading members.
- If the account balance exceeds the required collateral amount, trading members may withhold the excess.
Besides, Decree No. 158/2006/NĐ-CP also stipulates that the Goods Exchange shall disclose the following information:
- Trading quotations on total volume of goods traded each day, including opening, closing, the highest and lowest prices and prices matched for each type of goods traded through the Goods Exchange.
- Trading results by mode of order matching and order matching contents, including types of goods and volumes of goods for which selling orders match buying orders and other contents specified in the operation charter.
- Other information specified in the operation charter of the Goods Exchange.
View more details at Decree No. 158/2006/NĐ-CP of Vietnam’s Government, effective from January 22, 2007.
Ty Na
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