Conditions and application for establishment of commodity exchanges in Vietnam

Conditions and application for establishment of commodity exchanges in Vietnam (Internet image)

1. Conditions for establishment of commodity exchanges in Vietnam

A commodity exchange may be established if:

- it has a charter capital of at least one hundred and fifty (150) billion dong;

- it has an information system that meets requirements for technology for trading in commodities through commodity exchanges. To be specific:

+ The server system shall operate stably and there should be at least one backup server at the ready in the event of a failure of the primary server;

+ The server system shall back up business application data, trading data and recover data in the event of a failure;

+ Application software shall comply with requirements for intellectual property rights in accordance with regulations of law;

+ The software system shall have the ability to log trading, payment and delivery during business process for a period of at least 05 years;

+ The information system shall comply with technical regulation on cyberinformation security, if any.

- Its charter is not contrary to regulations of Decree 158/2006/ND-CP.

(Article 8 of Decree 158/2006/ND-CP, as amended by Clause 7 Article 1 Decree 51/2018/ND-CP)

2. Applications for establishment of commodity exchanges in Vietnam

Applications for establishment of commodity exchanges includes:

- An application form (Form No. 01 in the Appendix I of Decree 158/2006/ND-CP);

Applications for establishment of commodity exchanges

- A copy of the enterprise registration certificate;

- An economic and technical report specifying objectives, office buildings, infrastructure and information technology system, enclosed with documentary evidences;

- A draft of the commodity exchange’s charter, specifying contents set forth in Article 14 of Decree 158/2006/ND-CP, enclosed with the record on approval for the draft. The draft of the charter shall be signed by the legal representative of the commodity exchange.

3. Charter of the commodity exchange in Vietnam

- The operation charter of the Goods Exchange must have the following principal contents:

+ Conditions and procedures for recognizing the member status; rights and obligations of members;

+ Cases of termination of the member status and responsibilities thereupon;

+ Type of goods for trading; standards and units of measurement of such type of goods;

+ Model trading contract and trading order;

+Margin trading and trading fees;

+ Trading limits, collateral and fee;

+ Methods and procedures for contract performance;

+ Information to be disclosed by the Goods Exchange and operation reports and financial statements of the members;

+ Risk management measures;

+ Settlement of disputes;

+ Amendment or supplementation of the operation charter;

+ Other relevant contents.

- The operation charter of the Goods Exchange must not contravene the provisions of Decree 158/2006/ND-CP and current provisions of law.

(Article 14 of Decree 158/2006/ND-CP, as amended by Clause 13, Article 1 of Decree 51/2018/ND-CP)

4. Contents of the establishment license of the commodity exchange in Vietnam

The establishment license shall be also treated as the certificate of eligibility for business and include the following contents:

- Headquarters’ name and address;

- Full name, permanent address, nationality, number of ID card, passport or other valid identity documents of the legal representative of the commodity exchange;

- Number of the business registration certificate of the enterprise establishing the commodity exchange;

- Charter capital of the commodity exchange;

- Commodities to be traded.

(Article 11 of Decree 158/2006/ND-CP, as amended by Clause 10, Article 1 of Decree 51/2018/ND-CP)

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