Vietnam: A market maker shall be given priority in application for registration as a lead underwriter in each issue of government bonds

Duy Thinh

08:55, 09/07/2018

This is a notable new point specified in Decree No. 95/2018/ND-CP of Vietnam’s Government providing for issuance, registration, listing and trading of government debt instruments on the securities market.

According to Decree No. 95/2018/ND-CP of Vietnam’s Government, “market maker” refers to an organization appointed by the Ministry of Finance to exercise and perform its rights and duties in the issuance and trading of government debt instruments in the domestic market.

A market maker shall be given priority in application for registration as a lead underwriter in each issue of government bonds or national development bonds and be the sole entity entitled to participate in issues, repurchases or swaps of government debt instruments by bidding.

Concurrently, a market maker shall have other rights as follows:

- Attending periodic exchanges about bond issuance and orientations for bond market development policies with the Ministry of Finance;

- Request the State Treasury to issue government bonds for ensuring the market liquidity;

- Being given priority in negotiation on repurchase or swap of government debt instruments.

Decree No. 95/2018/ND-CP of Vietnam’s Government takes effect from July 01, 2018.

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