he Ministry of Finance of Vietnam has promulgated Circular 102/2021/TT-BTC regulating service prices in the securities sector applied at securities trading organizations and commercial banks participating in Vietnam's stock market.
Article table of contents
Discounts on some services in the securities sector from 2022 (Artwork)
According to the Circular, the price adjustment of a number of services in the securities sector is applied at securities trading organizations and commercial banks participating in the Vietnamese stock market, specifically as follows:
* Service price applied at the underlying stock market
- Price of brokerage services for buying and selling stocks, fund certificates, and covered warrants (applicable to listed securities and securities registered for trading): reduced from a maximum of 0.5% of transaction value down to 0.45% of the transaction value.
- Service price for issuing and redeeming ETF certificates: up to 1%/transaction value (applicable to investors) and maximum of 0.5%/transaction value (applicable to funders).
Currently, Circular 128/2018/TT-BTC of Vietnam stipulates that the service price for issuing ETF certificates is up to 5%/transaction value and the service price for the redemption of ETF certificates is up to 3%/price transaction value; at the same time, there is no identification applicable to investors or fund founders.
- Auction service price: adjusted from 20 million VND/1 auction of shares/each type of securities to 0.15% of the total value of shares and types of securities actually sold, up to a maximum is 150 million VND/1 auction.
Currently, Circular 128/2021 stipulates from 20 million VND/share auction/each type of securities to 0.3% of the total value of shares and types of securities actually sold.
*Service price applied at the derivatives market of Vietnam
Futures contract brokerage service price:
- Reduced from a maximum of VND 15,000 to a maximum of VND 5,000/Index futures contract.
- Up to 25,000 VND down to 8,000 VND/Government bond futures contract.
The above prices do not include derivatives trading services, position management services, derivatives clearing services, derivatives post-trading error correction services, and management services to manage escrow assets that the securities company submits to the Stock Exchange and the Vietnam Securities Depository and Clearing Corporation in accordance with regulations.
(Italics are new content).
Pursuant to the provisions of the law on prices, relevant laws, maximum prices and price brackets specified in the Service Tariff promulgated together with Circular 102/2021 of Vietnam, service providers in the securities sector shall decide on a specific price in accordance with the actual service provision.
For contracts for providing services in the securities sector that were signed before January 1, 2022, the provisions of Circular 128/2018/TT-BTC will continue to be followed until the contract is terminated.
Circular 102/2021/TT-BTC of Vietnam takes effect from January 1, 2022.
Bao Ngoc
