Headlines 13/01/2021 17:28 CH

Requirements for providing securities as margins for clearing transactions

Thùy Liên

On December 31, 2020, the Ministry of Finance issues the Circular No. 119/2020/TT-BTC regulating registration, depositing, clearing and settlement of securities trades.

According to this document, investors and clearing members may use securities as margins for clearing transactions if these securities meet the following requirements:

- They are not classified as those subject to cautions, administration or temporary suspension of trades on stock exchanges, or those of issuing organizations that are in the state of dissolution, bankruptcy, amalgamation or merger;

- They are not assets put up as security collateral for transactions under civil laws governing collateral transactions, even including collateral used in margin trades at securities companies;

- They are not assets that are frozen by state regulatory authorities or organizations under relevant laws;

- They are not frozen or temporarily impounded at Vietnam Securities Depository and Clearing Corporation;

- They are freely transferred and already deposited on stock accounts used for trades performed at Vietnam Securities Depository and Clearing Corporation; they are assets under the ownership of parties providing clearing margins that may be investors or clearing members;  

- Other requirements prescribed in rules and regulations of Vietnam Securities Depository and Clearing Corporation.

Circular No. 119/2020/TT-BTC is entering into force as of February 15, 2021.

>> CLICK HERE TO READ THE ARTICLE IN VIETNAMESE

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