Detailed guidance on procedures for registration of clearing members in Vietnam

According to the Decree No. 158/2020/NĐ-CP of the Government of Vietnam, “clearing member” means a securities company, commercial bank or FBB recognized by Vietnam Securities Depository and Clearing Corporation (VSDCC) as a clearing member to make clearing and settlement for derivative transactions. To apply for registration as a clearing member of VSDCC, a securities company, commercial bank or foreign bank branch is required to meet the following requirements:

- Obtain the certificate of eligibility to provide derivative clearing and settlement services issued by the State Securities Commission of Vietnam;

- Be trading member or special trading member on the derivative market of the Stock Exchange;

- Meet the requirements laid down by VSDCC pertaining to information technology infrastructure and operational procedures for clearing and settlement activities.

Procedures for registration of clearing members

Step 1: Application

Securities companies, commercial banks or foreign bank branches shall prepare 01 full set of original application documents and send directly or by post to VSDCC. An application for registration as clearing member consists of:

1. The application form made using Form No. 08 in the Appendix enclosed with the Decree No. 158/2020/NĐ-CP;

2. The certificate of eligibility to provide derivative clearing and settlement services issued by State Securities Commission of Vietnam;

3. Decision to grant membership of trading member or Decision to grant membership of special trading member issued by the Stock Exchange;

4. The description of the applicant’s information technology infrastructure and operational procedures as prescribed by VSDCC.

Note: Documents in the dossier that are copies must be copies from the original book or certified.

Step 2: Appraisal of dossiers and request the applicant to make preparations for clearing and settlement activities

Within 07 business days from the receipt of the application, VSDCC check the validity of the application:

- If the received application is adequate and valid, VSDCC shall give written principal approval for clearing member registration to the applicant and request the applicant to make preparations for clearing and settlement activities

- If the received application is inadequate and invalid, VSDCC shall request the applicant in writing to revise it.

Step 3: Within 01 business day from the day on which the applicant completes all preparations as requested by VSDCC, VSDCC shall issue a certificate of clearing member

VSDCC shall refuse to grant membership of clearing member in the following cases:

- The applicant fails to meet membership requirements;

- The application for registration as clearing member contains forged documents or false information;

- The applicant fails to complete procedures for issuance of certificate of clearing member within 90 days from the day on which VSDCC issues a written principal approval for clearing member registration.

VSDCC shall give a written notice of refusal, in which reasons for refusal must be indicated, to the applicant, and disclose relevant information on its media.

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