Requirements for technical infrastructure of online securities transaction system in Vietnam

Requirements for technical infrastructure of online securities transaction system in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. What is online securities transaction system?

According to Clause 2, Article 3 of Circular 134/2017/TT-BTC, online securities transaction system means a system intended to manage and carry out online securities transaction, including: hardware, software, database, telecommunications network, Internet, computer network.

2. Requirements for technical infrastructure of online securities transaction system in Vietnam

According to Article 6 of Circular 134/2017/TT-BTC (amended in Circular 73/2020/TT-BTC), requirements for technical infrastructure of online securities transaction system in Vietnam are as follows:

(1) Regarding a securities company providing online securities transaction services:

(i) Online securities transaction system shall be physically separated from other business systems of the company to ensure cyberinformation security, reduce risks and avoid conflicts between systems;

(ii) Online securities transaction system shall be equipped with a dedicated server. Personal computer shall not be used as a server and it is not allowed to share other units or companies’ servers.

There must be standby information technology equipment exclusively used for online securities transaction system;

(iii) The area where online securities transaction system is located shall comply with security, environment and safety requirements. To be specific, in the separate area, there must be:

+ Access control magnetic locks or equivalent devices, video recording system;

+ Dedicated fire alarm and fighting system, air conditioning system, temperature and humidity monitoring system;

+ Uninterruptible power supply, dedicated backup generators,

+ Lightning protection system;

- The company may rent space for online securities transaction system in data centers.

These data centers shall comply with regulations on data center operations.

The online securities transaction system located in a data center shall have solutions for preventing unauthorized access and exploitation of data;

(iv) The online securities trading system must be integrated with solutions whereby investors can use digital certificates or digital signatures of public certification authorities when executing online securities transaction orders.

It may be also integrated with other solutions prescribed in Point a and Point c Clause 1 Article 8 of Circular 134/2017/TT-BTC.

Application of digital certificates and digital signatures to investors’ securities transactions shall comply with specific guidelines given by the State Securities Commission of Vietnam;

(v) The provision of telephone transaction methods must be equipped with a switchboard system or equipment with the function of recording, managing and looking up calls.

All calls to place orders from investors must be recorded, fully archived and must ensure information security and data confidentiality.

(vi) When rendering transaction services via telephone, the telephone exchange or another device with call recording, management and search functions must be equipped.  Any calls for placing orders of investors must be recorded and stored in a manner that ensures information and data security;

Technical or management measures shall be adopted in order to set limits on securities purchase and sale by investors involved in online securities transaction services. These limits shall be disclosed to investors through online securities transaction page and procedures for approving adjustments to such limits must be available.

(2) Asset management companies and fund certificate distributors that provide online securities transaction services shall comply with the requirements specified in (i), (ii) and (v) and 3 of Article 6 of Circular 134/2017/TT-BTC.

Tran Thanh Rin

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