Thông tư 11/2016/TT-BTC hướng dẫn Nghị định 42/2015/NĐ-CP về chứng khoán phái sinh

THE MINISTRY OF FINANCE

Circular No. 11/2016/TT-BTC dated January 19, 2016 of the Ministry of Finance guiding for a number of contents of the Government’s Decree No. 42/2015/ND-CP dated May 05, 2015 on derivatives and derivatives market

Pursuant to the Law on Securities dated June 29, 2006;

Pursuant to the Law on amending and supplementing a number of articles of the Law on Securities dated November 24, 2010;

Pursuant to the Government’s Decree No. 58/2012/ND-CP dated July 20, 2012 stipulating in detailed and providing guidelines for implementing a number of articles of the Law on Securities and the Law on amending and supplementing a number of articles of the Law on Securities;

Pursuant to the Government’s Decree No. 60/2015/ND-CP dated June 26, 2015 amending and supplementing a number of articles of the Government’s Decree No. 58/2012/ND-CP dated July 20, 2012 stipulating in detailed and providing guidelines for implementing a number of articles of the Law on Securities and the Law on amending and supplementing a number of articles of the Law on Securities;

Pursuant to the Government’s Decree No. 42/2015/ND-CP dated May 05, 2015 on derivatives and derivatives market;

Pursuant to the Government’s Decree No.215/2013/ND-CP dated 23 December 2013 defining the functions, tasks, powers and organizational structures of Ministry of Finance;

At the request of the Chairman of the State Securities Committee of Vietnam;

Minister of Finance promulgates this Circular providing guidelines for a number of articles of the Government’s Decree No. 42/2015/ND-CP dated May 05, 2015 on derivatives and derivatives market.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of adjustment and subject of application

1.This Circular provides guidelines for a number of articles of the Government’s Decree No. 42/2015/ND-CP dated May 05, 2015 on derivatives and derivatives market, including:

a) Derivative products include: stock index futures contract and government bond futures contract;

b) Operations of the derivatives market include: transaction, clearing and settlement for derivative trading;

c) Operations of organizations trading in derivative services, clearing members, trading members and market-making members.

2.This Circular shall apply to:

a) The Stock Exchange;

b) The Vietnam Securities Deposit (hereinafter referred to as VSD);

c) Derivative trading organizations;

d) Derivative clearing and settlement service providers;

D) Clearing members, trading members and market-making members;

e) The investors and relevant organizations and individuals.

Article 2. Interpretation of terms

Apart from the terms interpreted in the Government’s Decree No. 42/2015/ND-CP dated May 05, 2015 on derivatives and derivatives market (hereinafter referred to as the Decree No. 42/2015/ND-CP), in this Circular, these terms shall be construed as follows:

1.Clearingrefers a process determining the net position for working out financial obligations of the trading parties.

2.Matched sale-purchase transactionrefers the opening of a new long position (or short position) to reduce the previously opened long position (or short position).

3.Preference priceis the price determined by the Stock Exchange and used as the base for determining the highest price (ceiling price) and the lowest price (floor price) in the trading date.

4.Settlement priceis the trading-order matching price in the futures contract entered in between the investors through the trading system of the Stock Exchange.

5.Daily settlement priceis the price determined at the end of the trading date for aggregating daily position-based gain or losses.

6.Final settlement priceis the price determined at the final trading date for determining settlement obligations when the contract is executed.

7.The value of marginsincludes balance of the margin deposit accounts and value of margin securities which is determined according to the market price and discount rate under the rules of VSD.

8.Brokerage customersrefer the investors who conduct derivative trading through the brokerage of the trading member.

9.Clearing and settlement customersrefer to non-clearing members and their brokerage customers who have entered into derivative clearing and settlement entrustment contracts with the appointed clearing members.

10.Open interestsof a derivative at a specific time is the volume of derivatives which is put up in circulation at that time, is not liquidated or closed up.

11.Marginrefers to the party having obligations deposits cashes or securities accepted as guarantee of settlement of obligations for derivative trading of that party.

12.Initial marginrefers to the margin made before the derivative trading is executed.

13.Value of required maintenance marginis the minimum margin which must be maintained by the party having obligations and calculated by VSD for the number of derivatives of a trading account.

14.Rate of margins in cashesis the rate between the value of margins in cashes and total value of required margins.

15.Stock index futures contract(hereinafter referred to as the index futures contract) is a futures contract made according to the underlying asset as the stock index.

16.Government bond futures contractis a futures contract made according to the underlying asset as the Government bond or quasi-sovereign bond which contains a number of basic features of the government bond.

17.Clearing and settlement contractis the contract made between a clearing member and VSD for carrying out the derivative clearing and settlement on name of the clearing member with VSD.

18.Settlement bank for derivative trading(hereinafter referred to as the settlement bank) is a commercial bank managing the margin deposit accounts of VSD and serving settlement for derivative trading in which VSD is the main clearing partner.

19.Trading accountis an account opened at a trading member for conducting the customer s derivative trading.

20.Margin accountsrefer to accounts opened for the investors and the clearing members for managing the margins and underlying assets for transferring and accounting daily position-based gain or losses and service contract execution.

21.Derivative services trading organizationsrefer to organizations which have Certificates of good qualification for derivatives trading; commercial banks and branches of foreign banks which have Certificates of good qualification for providing derivative clearing and settlement services.

22.Contract executionrefers to the trading parties in the futures contract conduct the sales or purchase of the underlying assets or settlement for the difference between the daily settlement price and the settlement price or daily settlement price according to the contract’s contents and the rules of VSD.

23.Positions of holder of clearing membershipinclude those of the investors and the clearing members including:

a) Positions in self-trading and market making (if any) of the clearing members;

b) Positions of the brokerage customers of the clearing member;

c) Positions of customers making clearing and settlement entrustment.

Chapter II

DERIVATIVE PRODUCTS

Article 3. Index futures contract

1.The underlying asset of the index futures contract is the stock index (hereinafter referred to as the underlying index) which is designed by the Stock Exchange in the principle of setting up and managing the index promulgated by the Stock Exchange upon the approval of the State Securities Committee of Vietnam.

2.When the index futures contract matures, the settlement shall be made in cashes according to the rules promulgated by VSD upon the approval of the State Securities Committee of Vietnam.

Article 4. Government bond futures contract

1.The underlying asset of the government bond futures contract is:

a) The government bonds trading in the market; or

b) The quasi-sovereign bonds which have a number of basic features of the government bonds. The State Securities Committee of Vietnam shall build up the basic features of the government bonds, design the quasi-sovereign bonds and report to the Ministry of Finance for approval.

2.When the government bond futures contract matures, the settlement shall be made in cashes or by transferring assets according to the rules of VSD. The method of settlement must be clearly determined before it is listed.

3.The Stock Exchange coordinates with VSD to determine and publish the following information on its website:

a) List of convertible bonds, determination principle and conversion ratio of each bond (with regard to the government bond futures contract whose settlement is made by transferring the underlying assets);

b) List of bonds used for determining the final settlement price, determination principle and weighting of each bond stated in that list (with regard to the government bond futures contract whose settlement is made in cashes).

4.Determination and publishing of information of bonds provided at Clause 3 of this Article are executed in accordance with the rules of the Stock Exchange and VSD’s rules. The Stock Exchange shall coordinate with VSD to determine the final time for closing the list of convertible bonds or the list of bonds used for determining the final settlement price. After that time, the Stock Exchange and VSD shall not adjust the aforesaid lists of bonds.

Article 5. Listing and organizing derivative trading

1.The Stock Exchange shall coordinate with VSD to determine the contents of derivatives as prescribed at Point a, b Clause 2 Article 6 of the Decree No. 42/2015/ND-CP; list and organize the derivative trading upon the approval of the State Securities Committee of Vietnam in accordance with the laws.

2.The Stock Exchange has the right to temporarily stop trading of one or a number of certain derivatives or temporarily stop derivative trading in the whole market upon one of the following cases:

a) It’s unable to determine the value of underlying assets because the underlying market stops its trading.

b) The underlying securities are temporarily suspended from trading;

c) In case of force majeure such as act of God, fire or technical problems occurred at the trading system, clearing system or settlement system;

d) Other cases as prescribed in the rules of the Stock Exchange.

3.The Stock Exchange shall publish information of stopping trading within twenty-four (24) hours since the events leading trading suspension occur. Trading operations must be immediately restored within twenty-four (24) hours since actions against the events leading trading suspension have been successfully executed.

4.In case of trading errors, the correction of trading errors is executed in accordance with the rules of the Stock Exchange and VSD’s rules. If the correction of trading errors results in exceeding the position limit, the trading members and customers must perform the matched sale-purchase transactions at the next trading date to reduce their positions in accordance with the rules of VSD.

Chapter III

DERIVATIVES TRADING AND SETTLEMENT

Article 6. Derivatives trading

1.In order to trade in derivatives, the investor must open a derivative trading account at the trading member and a margin account at the appointed clearing member. If the investor who is also a derivative trading member has opened a basic securities trading account at a securities company, the investor can use the said securities trading account to trade in derivatives after having a margin account opened at the appointed clearing member.

2.The investor’s trading is executed as follows:

a) The investor’s trading orders are matched with each other in the trading system of the Stock Exchange. The investor is considered, after order matching, as having entered into a derivative contract, has the full power and is obliged to perform all obligations arisen from the said contract;

b) Before any trading order is placed, the investor, when holding the position and performing contract, must ensure the maintenance margin as requested by the clearing member and in accordance with this Circular;

c) The investor s position on the trading account must be within the position limit according to the rules of VSD. In case of exceeding the position limit, the investor shall conduct matched sale-purchase transactions to reduce his position or provide additional margins (in case of need) within the period regulated by VSD.

Article 7. The investor s trading account

1.The investor must sign a contract with the trading member for opening an account for trading in derivatives. The foreign investor must register for securities trading code in accordance with the law on securities with respect to the foreign investment in securities market before they open derivative trading accounts.

2.The investor can open many derivative trading accounts provided that the only one (01) trading account is opened at a trading member and open a margin account at the appointed clearing member in corresponding with each trading account in accordance with Article 8 of this Circular. Fund management company can open a derivative trading account on its name at the trading member for each entrusting investor.

3.A securities company, which has obtained certificate of good qualification for self-trading in derivatives and is not a derivative trading member, can open a trading account at the trading member and a margin account at the appointed clearing member to invest in derivatives in accordance with this Circular. A securities company which is established in a foreign country can open one (01) account for conducting self-trading in derivatives and one (01) other account for acting as a derivatives broker for other foreign investors.

Article 8. The investor’s margin account

1.The clearing member shall open, for each investor, one (01) separate margin deposit account at a bank and one (01) margin securities account serving management of the margins and performing settlement obligations for the positions on the investor s trading account. A non-clearing member and his brokerage customers can open a margin account at a joint clearing member.

2.The investor s margin deposit account and margin securities account are used for the following operations:

a) Receive and return the margins to the investor;

b) Receive daily gain or pay daily losses incurred from the investor s positions; make settlement for contract execution; receive interests from bank deposits according to the interest rate agreed between the clearing member and the bank;

c) Receive or transfer the underlying assets in the course of contract execution (if the settlement is made by transferring the underlying assets) for the investor’s positions.

3.When trading in derivatives, the investor must perform the margins with the clearing member as follows:

a) The investor shall fully provide initial margins for all estimated positions for the clearing member before his trading is executed, except for matched sale-purchase transactions;

b) The investors must maintain the margins for their positions and provide additional margins when the value of the margins is lower than the required maintenance margins level or the balance of the margin deposit accounts cannot ensure the maintenance margin ratio in cashes required by the clearing members. The clearing members can request the investors to provide intra-day margins depending on the market conditions.

c) The investor can withdraw excess of margins if the value of the margins exceeds the required maintenance margin level laid down by the clearing member;

d) When initial margin or additional margin is executed, the clearing member can request the investor to provide margins in cashes absolutely or use a part of margins in securities according to the rate of margins in cashes prescribed by the clearing member provided that it shall not lower than the rate of margin in cashes regulated by the rules of VSD.

4.The investor s securities which are provided as the margins according to the clearing member s selection must satisfy the following conditions:

a) As securities contained in the list of securities accepted as margins promulgated by VSD as prescribed in Article 22 of this Circular;

b) Securities must be not secured assets in transactions in accordance with the civil law with respect to secured transactions including stocks purchased in margin loan and purchase transactions; securities are not blockaded by the state competent agencies in accordance with relevant laws and are not loaned in accordance with the laws.

c) Securities must meet other standards of the clearing member.

Article 9. The investor’s settlement

1.Settlement for derivative trading includes settlement for position profits or losses and settlement for contract execution with particulars as follows:

a) Settlement for position profits or losses: Settlement value for the position profits or losses shall be daily determined on the base of the positions opened on the investor s trading accounts and the difference between the daily settlement price and that of the immediate preceding trading date; or compared with the settlement price (if the position is newly opened in trading day); or the difference between the trading price and the daily settlement price of the immediate preceding trading date (if the position is closed before its term). In which, the aforementioned prices are published on the website of the Stock Exchange.

b) Settlement for contract execution:

-With regard to the contracts whose methods of settlement are made in cashes, the investor can receive profits or must pay for losses which are determined on the base of the number of executed contracts and the difference between the final settlement price and the daily settlement price of immediate preceding trading date;

-With regard to the contracts whose methods of settlement are made by transferring the underlying assets, the investor, which is the seller, must transfer the underlying assets and the investor, which is the buyer, must perform settlement according to the contract’s provisions.

2.The settlement is executed by the investor’s margin deposit account and margin securities account. The VSD and the clearing members shall coordinate to perform the settlement in accordance with Article 19 of this Circular.

Chapter IV

DERIVATIVE TRADING ORGANIZATION AND DERIVATIVE SERVICE PROVIDER

Section 1. DERIVATIVE TRADING ORGANIZATION

Article 10. Registering for trading in derivatives

1.A securities trading organization can trade in derivatives after having Certificate of good qualification for derivative trading granted by the State Securities Committee of Vietnam. A Certificate of good qualification for derivative trading shall be granted if the following conditions are satisfied:

a) Securities trading organization must satisfy all conditions regulated at Clause 1 Article 4 of the Decree No. 42/2015/ND-CP;

b) All provisions are set up as prescribed and the organization has not incurred losses within two (02) latest years; at least 220% of working capital ratio has been continuously achieved within twelve (12) latest months ahead of the month of application for Certificate of good qualification for derivative trading;

c) Financial statements of the latest financial year have been audited and latest half-year financial statements have been controlled by an accredited auditing organization. The auditor’s opinion on these financial statements must be absolute approval without any exception or note.

2.The application for a Certificate of good qualification for derivative trading includes:

a) Application form for Certificate of good qualification for derivative trading as regulated by the State Securities Committee of Vietnam;

b) Minutes and resolution of the general meeting of shareholders or the meeting of the Board of members or Decision of the owner on derivative trading;

c) Lawful documents proving that the securities trading organization has satisfied all conditions stated at Clause 1 of this Article;

d) List enclosed with personal profiles of Director (General Director), Deputy Directors (Deputy General Directors) in charge of derivative trading and members for each derivative trading operation as regulated by the State Securities Committee of Vietnam;

D) Operation, internal control and risk management processes which shall be applied to planned derivative trading;

e) Report on technical facilities and IT infrastructure with suitable systems (such as trading system, clearing and settlement systems) for conducting trading in derivatives and providing derivative services.

3.One (01) original set of the application regulated at Clause 2 of this Article is set up and enclosed with electronic information files. The original application is sent, directly or by post, to the State Securities Committee of Vietnam;

4.Within fifteen (15) days from the receiving date of lawful application as regulated at Clause 2, 3 of this Article, a Certificate of good qualification for derivative trading shall be granted by the State Securities Committee of Vietnam. In case of refusal of granting Certificate of good qualification for derivative trading, the State Securities Committee of Vietnam must send a written response with legitimate reasons.

5.After having a Certificate of good qualification for derivative trading granted by the State Securities Committee of Vietnam, the securities trading organization shall amend and supplement its charter with regulations on derivative trading and submit it to the State Securities Committee of Vietnam after being approved at the latest general meeting of shareholders or the latest meeting of the board of members or approved by the owner.

Article 11. Suspending or terminating derivative trading

1. The State Securities Committee of Vietnam can decide to suspend one or a number of derivative trading operations within the maximum duration of twelve (12) months in the cases regulated at Clause 1 Article 5 of the Decree No. 42/2015/ND-CP.

2. Derivative trading organization can restore its trading operations after it is successful in taking remedial actions against violations leading such suspension. After suspension duration, if the derivative trading organization keeps failing to take remedial actions against violations leading such suspension, it is obliged to terminate its derivative trading.

3. Derivative trading organization shall terminate its derivative trading when Certificate of good qualification for derivative trading is revoked. Such revocation is executed upon the cases regulated at Clause 2 Article 5 of the Decree No. 42/2015/ND-CP.

4. If a derivative trading organization is voluntarily terminating its operations, the application for termination of derivative trading operations must be submitted. The application includes:

a) Application form for termination of derivative trading operations according to guidance of the State Securities Committee of Vietnam;

b) Minutes and resolution of the general meeting of shareholders or the meeting of the Board of members or Decision of the owner on termination of derivative trading operations and approval on settlement methods of relevant matters;

c) Methods for settlement of unexpired derivative trading contracts including methods for settlement of customer s margins and accounts.

5. One (01) original set of the application regulated at Clause 4 of this Article is set up and enclosed with electronic information files. The original application is sent, directly or by post, to the State Securities Committee of Vietnam.

6. Within fifteen (15) days from the receiving date of lawful application, the State Securities Committee of Vietnam shall grant a written approval for termination of derivative trading operations. In case of refusal of approval, the State Securities Committee of Vietnam must send a written response with legitimate reasons.

7. The derivative trading organization shall compulsorily terminate its derivative trading operations upon the cases regulated at Clause 4 Article 5 of the Decree No. 42/2015/ND-CP.

8. Within thirty (30) days since the derivative trading organization is obliged to terminate its derivative trading operations as prescribed at Clause 7 of this Article, the State Securities Committee of Vietnam shall grant a letter requesting the derivative trading organization to carry out formalities of terminating its derivative trading operations.

9. As of the receiving date of the letter of the State Securities Committee of Vietnam as prescribed at Clause 1, Clause 6 and Clause 8 of this Article:

a) The derivative trading organization shall, within twenty-four (24) hours, publish information of suspension or termination of its derivative trading operations; methods, time-limit and route for settling unexpired contracts. Settlement time-limit shall be more than forty-five (45) days in order that the investors can settle their positions and transfer their margins but not exceed sixty (60) days as of the publishing date of information;

b) Within five (05) days, the derivative trading organization shall send notice of methods for settlement of unexpired contracts to its every customer.

10. During suspension or when carrying out formalities for termination of derivative trading, the derivative trading organization shall:

a) Perform operations as prescribed at Clause 5 Article 5 of the Decree No. 42/2015/ND-CP;

b) Stop its self-trading in derivatives, except for the matched sale-purchase transaction; stop transactions for market making (if any);

c) Not sign new derivative trading contracts. As for unexpired derivative trading contracts:

-Stop to receive and perform customer’s trading orders, except for the matched sale-purchase transaction; stop to receive customer’s margins, except for additional margin;

-Close customer s balance and account; liquefy positions and return margins to the customer; discuss and hand over rights, responsibilities and obligations and transfer accounts and margins to replacing member. The derivative trading organization which is subject to suspension of its derivative trading shall only perform this regulation at the customer’s request;

-Perform trading at the request of VSD and the Stock Exchange to reduce the customer s positions.

d) Fully pay tax arrears; continue settlement of debts.

11. Within five (05) days as of ending date of the time-limit for carrying out formalities for termination of derivative trading operations, the derivative trading organization shall submit report to the State Securities Committee of Vietnam of settlement result, including:

a) List of customers with adequate identity information, trading account number, margin account number and list of margins and positions of each account; reasons for unsuccessful closing and settlement of unsolved accounts.

b) Minutes of liquidation with confirmation of replacing clearing member and certificates of completion of hand-over of customer’s accounts and margins (if any) to the replacing member;

c) Decision on abrogation of member status granted by the Stock Exchange (applicable to trading member) or by VSD (applicable to clearing member).

12. Within ten (10) days from the receiving date of the report of settlement result prescribed at Clause 11 of this Article, the State Securities Committee of Vietnam shall grant an approval on termination of derivative trading operations or make a decision on revocation of Certificate of good qualification for derivative trading. In case of refusal of settlement, the State Securities Committee of Vietnam must send a written response with legitimate reasons.

13. Member of the Board of Directors or the Board of members, the company’s owner, Director or General Director or the legal representative of the derivative trading organization shall assume responsibility for honesty and accuracy of the application and report of result of termination of derivative trading operations. If such documents are discovered to be untrue or counterfeit, the aforesaid persons shall be jointly liable for unpaid debts, tax arrears and the workers’ unsolved benefits and bear personal responsibility before the law for any arisen consequence within five (05) years as of the date of submission of documents to the State Securities Committee of Vietnam as prescribed at Clause 11 of this Article.

Section 2. DERIVATIVE CLEARING AND SETTLEMENT SERVICE PROVIDER

Article 12. Registering for supply of derivative clearing and settlement service

1. Securities companies, commercial banks and branches of foreign banks are eligible for supply of derivative clearing and settlement service after a Certificate of good qualification for supply of derivative clearing and settlement service has been granted by the State Securities Committee of Vietnam. A Certificate of good qualification for supply of derivative clearing and settlement service is granted if the following conditions are satisfied:

a) All conditions prescribed at Clause 2 Article 4 of the Decree No. 42/2015/ND-CP and regulations stated at point c Clause 1 Article 10 of this Circular are fulfilled;

b) The following financial safety ratio is satisfied:

-As for securities companies: all required provisions are set up and the company has not incurred loss within two (02) latest years; at least 260% of working capital ratio has been continuously achieved within twelve (12) latest months ahead of the month of application for Certificate of good qualification for supply of derivative clearing and settlement service;

-As for commercial banks and branches of foreign banks: the capital safety ratio is satisfied in accordance with the law on credit institutions within twelve (12) latest months ahead of the month of application for Certificate of good qualification for supply of derivative clearing and settlement service.

2. The application for Certificate of good qualification for supply of derivative clearing and settlement service includes:

a) Application form for Certificate of good qualification for supply of derivative clearing and settlement service as regulated by the State Securities Committee of Vietnam;

b) Minutes and resolution of the general meeting of shareholders or the meeting of the Board of members or Decision of the owner on supply of derivative clearing and settlement service;

c) Documents proving that the securities company or commercial bank or branch of foreign bank has satisfied all conditions prescribed at Clause 1 of this Article;

d) Operation, internal control and risk management processes which shall be applied to planned derivative clearing and settlement service;

D) Report on technical facilities and IT infrastructure with suitable systems (such as clearing and settlement systems) for supply of derivative clearing and settlement service.

3. One (01) original set of the application regulated at Clause 2 of this Article is set up and enclosed with electronic information files. The original application is sent, directly or by post, to the State Securities Committee of Vietnam.

4. Within fifteen (15) days from the receiving date of lawful application as regulated at Clause 2, 3 of this Article, a Certificate of good qualification for supply of derivative clearing and settlement service shall be granted by the State Securities Committee of Vietnam. In case of refusal of granting Certificate of good qualification for supply of derivative clearing and settlement service, the State Securities Committee of Vietnam must send a written response with legitimate reasons.

5. After having a Certificate of good qualification for supply of derivative clearing and settlement service granted by the State Securities Committee of Vietnam, the securities company or the commercial bank shall amend and supplement its charter with regulations on derivative operations and submit it to the State Securities Committee of Vietnam after being approved at the latest general meeting of shareholders or the latest meeting of the board of members or approved by the owner.

Article 13. Suspending or terminating supply of derivative clearing and settlement service

1. The State Securities Committee of Vietnam can decide to suspend the supply of derivative clearing and settlement service within the maximum duration of twelve (12) months in the following cases:

a) The application for the Certificate of good qualification for supply of derivative clearing and settlement service may be composed of counterfeit materials or those containing untrue information;

b) Operations serve the wrong purpose and are not consistent with those defined in the Certificate of good qualification for supply of derivative clearing and settlement service;

c) Fail to follow regulations laid down in Point a and D Clause 2 Article 4 of the Decree No. 42/2015/ND-CP;

d) Fail to follow regulations laid down in Point c Clause 2 Article 4 of the Decree No. 42/2015/ND-CP within six (06) consecutive months;

D) Fail to satisfy financial safety and capital safety target laid down in Point b Clause 1 Article 12 of this Circular within six (06) consecutive months;

2. Derivative clearing and settlement service provider can restore its operations after it is successful in taking remedial actions against violations leading such suspension. After suspension duration, if the derivative clearing and settlement service provider keeps failing to take remedial actions against violations leading such suspension, it is obliged to terminate its operations.

3. The derivative clearing and settlement service provider shall terminate its operations when Certificate of good qualification for supply of derivative clearing and settlement service is revoked. Such revocation is executed upon the following cases:

a) The derivative clearing and settlement service provider is voluntarily terminating its operations;

b) The derivative clearing and settlement service provider is compulsorily terminating its operations.

4. If the derivative clearing and settlement service provider is voluntarily terminating its operations, the application for termination of its operations must be submitted. The application includes:

a) Application form for terminating supply of derivative clearing and settlement service as regulated by the State Securities Committee of Vietnam;

b) Minutes and resolution of the general meeting of shareholders or the meeting of the Board of members or Decision of the owner on terminating supply of derivative clearing and settlement service and approving methods for settling relevant matters;

c) Methods for settlement of unexpired contracts of supply of derivative clearing and settlement service including methods for settlement of customer s margins and accounts.

5. One (01) original set of the application regulated at Clause 4 of this Article is set up and enclosed with electronic information files. The original application is sent, directly or by post, to the State Securities Committee of Vietnam.

6. Within fifteen (15) days from the receiving date of lawful application, the State Securities Committee of Vietnam shall grant a written approval for terminating supply of derivative clearing and settlement service. In case of refusal of granting approval, the State Securities Committee of Vietnam must send a written response with legitimate reasons.

7. The derivative clearing and settlement service provider shall compulsorily terminate its operations upon the following cases:

a) After the suspension comes to an end, the derivative clearing and settlement service provider keeps failing to take remedial actions against violations leading to such suspension.

b) It is subjected to dissolution or bankruptcy or temporary suspension or revocation of the Certificate of establishment and operation; or letter of approval on derivative clearing and settlement service is revoked by the State Bank (applicable to commercial banks and branches of foreign banks); or Certificate of good qualification for derivative brokerage or Certificate of good qualification for supply of derivative clearing and settlement service is revoked by the State Securities Committee of Vietnam; or splitting or division after which the newly-founded organization has failed to meet one of business requirements stipulated in Clause 2 Article 4 of the Decree No. 42/2015/ND-CP.

8. Within thirty (30) days since the derivative clearing and settlement service provider is obliged to terminate its operations as prescribed at Clause 7 of this Article, the State Securities Committee of Vietnam shall grant a letter requesting the derivative clearing and settlement service provider to carry out formalities of terminating its operations.

9. The derivative clearing and settlement service provider which is subjected to suspension or termination must perform and comply with relevant regulations as prescribed at Clause 9, Clause 10 and Clause 13 Article 11 of this Circular.

10. Within five (05) days as of ending date of the time-limit for carrying out formalities for terminating supply of derivative clearing and settlement service, the derivative clearing and settlement service provider shall submit report to the State Securities Committee of Vietnam of settlement result, including:

a) List of customers with adequate identity information, trading accounts, margin accounts and list of margins and positions of each account; reasons for unsuccessful closing and settlement of unsolved accounts;

b) Minutes of liquidation with confirmation of replacing clearing member and certificates of completion of hand-over of customer’s accounts and margins (if any) to the replacing member;

c) Decision on abrogation of status of clearing member granted by VSD.

11. Within ten (10) days from the receiving date of the report of settlement result prescribed at Clause 10 of this Article, the State Securities Committee of Vietnam shall grant an approval on terminating supply of clearing and settlement service or make a decision on revocation of Certificate of good qualification for supply of clearing and settlement service. In case of refusal of settlement, the State Securities Committee of Vietnam must send a written response with legitimate reasons.

Section 3. OPERATIONS OF TRADING MEMBER AND THE STOCK EXCHANGE

Article 14. Rights and obligations of trading member

1. Non-clearing members must enter into a contract for clearing and settlement entrustment with a joint clearing member. The contract’s contents must comply with regulations of the State Securities Committee of Vietnam. In case of change of the joint clearing member, closing and transferring margins and transferring positions are executed in accordance with the rules of VSD.

2. Trading member must enter into contract for opening trading account with customer. The contract’s contents must comply with regulations of the State Securities Committee of Vietnam.

3. Trading member shall frequently compare, check, update and sufficiently and timely provide trading information and other information for joint clearing member. The State Securities Committee of Vietnam, VSD and the Stock Exchange must be sufficiently and timely provided with the investor’s information and trading accounts at their request.

4. Trading member shall not open trading account for the following customers:

a) Individuals under 18 years of age;

b) Individuals who don’t have full capacity of civil acts, are implementing the prison sentence or prohibited from engaging in business by the court;

c) Director (General Director), Deputy Director (Deputy General Director), section heads and staff members of other trading member.

5. If a customer who has opened a trading account is discovered to be one of the cases stipulated at clause 4 of this Article, trading member must stop receiving the customer’s trading order, except for matched sale-purchase transaction and close the customer’s account immediately after all positions of that customer have been liquidated.

6. If the clearing member or customer is incapable of fulfilling settlement obligations, at the request of the Stock Exchange, VSD or the State Securities Committee of Vietnam, the trading member shall:

a) Stop receiving and executing trading order of the clearing member or customer who is incapable of fulfilling settlement obligations, except for matched sale-purchase transaction;

b) Execute other operations at the request of the State Securities Committee of Vietnam, the Stock Exchange and VSD.

7. Execute other rights and fulfill obligations as prescribed at clause 1, clause 2 Article 15 of the Decree No. 42/2015/ND-CP and rules of the Stock Exchange.

Article 15. Receiving and executing order and confirming trading result

1. Trading member can receive customer’s trading orders directly at counter or receive distance orders by telephone, fax and other transmission lines or via online trading system of the trading member. Trading order must be recorded with adequate information at time of receiving, order receiver (entering or correcting order, if any) and evidence of customer’s order placing.

If trading order is received by telephone or fax, it must be confirmed with customer before it is entered into system. Receipt of online trading order must comply with the law on e-trading.

2. Trading member shall execute customer’s trading order only when such order includes adequate information of customer, trading account, trading date, derivative code, methods, kind of order, kind of trading, volume and trading price according to the rules of the Stock Exchange.

3. Trading member must refuse to receive customer’s order upon the following cases:

a) Customer fails in fulfill required margins, except for matched sale-purchase transaction; or

b) Customer’s order exceeds the order limit; order, in accompany with the others of the same trading account, exceeds the accumulated order limit or order which causes the customer’s position on such account exceed the position limit according to the rules of the Stock Exchange or VSD (if any).

4. Within twenty-four (24) hours after the order is executed, the trading member shall confirm trading result with the customer as regulated by the State Securities Committee of Vietnam.

5. Within twenty-four (24) hours after the customer’s request is received and within three (03) days after ending the month, the trading member shall send trading account statement and report on trading status to the customer. Report’s contents shall conform to regulations of the State Securities Committee of Vietnam.

Article 16. Market-making member

1. The market-making member must be honest and goodwill when making market.

2. Kinds of derivatives which need to create liquidity and trading regulations for market maker are executed under the market-making contract and rules of the Stock Exchange.

3. The market-making member can execute market-making trading and self-trading at the same time provided that principles stated at the rules of the Stock Exchange must be ensured.

4. Execute other rights and fulfill obligations as prescribed at Clause 2 Article 15 of the Decree No. 42/2015/ND-CP.

Article 17. Managing market-making operations

1. The Stock Exchange can terminate, refuse to sign or refuse to extend the contracts with the market-making members based on the following factors:

a) Liquidity ratio of each kind of derivative;

b) The member’s financial capacity;

c) Operating effect, market-making quality and level of objectiveness, honesty and goodwill in market-making operations.

2. The Stock Exchange can suspend or terminate market-making contracts upon the following cases:

a) The market-making member violates provisions on quotation, market-making scale, time of quotation and other provisions leading suspension or termination of contract according to the rules of the Stock Exchange;

b) Other cases as prescribed in the rules of the Stock Exchange and in the market-making contract.

3. The market-making member can terminate his market-making operations in accordance with provisions of the market-making contract signed with the Stock Exchange.

4. Quarterly, the Stock Exchange shall evaluate operating effect and quality of the market-making member for each kind of derivative the market-making service of which is provided by such member. Evaluation of market-making effect and quality is based on the quotation (difference of posted price, time of quotation and posted volume), trading volume and other targets according to the rules of the Stock Exchange.

Section 4. OPERATIONS OF CLEARING MEMBERS AND VSD

Article 18. Clearing members

1. Clearing members shall have the following rights and obligations:

a) Sign clearing and settlement contracts with VSD and sign clearing and settlement entrustment contracts with non-clearing members. Such contracts must include a provision stating that clearing member is the authorized representative of the brokerage customer and clearing and settlement customer to act as the holder of positions of these customers and fulfill all obligations of these customers with VSD;

b) Separately manage accounts and margins for each customer; set up following book system and sufficiently aggregate information of positions, daily position-based gain or loss, value of initial margin, value of required maintenance margin, value and list of margins in corresponding with each account of the investor;

c) Regulate value of initial margin, value of maintenance margin and rate of margins in cashes provided that these values shall not lower than those stated in the rules of VSD. The clearing member must publish detailed information of assets accepted for margin, methods and time of margin on his website;

d) Other rights and obligations are executed in accordance with regulations at Article 22 of the Decree No. 42/2015/ND-CP and rules of VSD.

2. Subject to level of violation, VSD shall apply suitable methods for handing violations of clearing member, including:

a) Letter of reminder;

b) Reprimand;

c) Suspension;

d) Terminating status of clearing member.

3. Violations, order and procedures for handing violations of clearing member are executed in accordance with the rules of VSD.

4. Status of clearing member is terminated only after the clearing member has fulfilled transfer of positions and margins for closing customer’s accounts, liquidating positions and fulfilled settlement obligations on self-trading accounts (if any) and fulfilled all obligations with VSD.

Article 19. Derivative clearing and settlement operations

1. VSD shall execute the derivative clearing upon each account of the investor or clearing member in the principle that corresponding positions of the same derivative which have the same time of maturity on the same account shall be collated and deducted for defining net position of derivative on that account.

2. As for settlement of daily position-based gain or loss, VSD shall, basing on daily results of gain or loss on each account of the investor, make clearing in cashes according to each account of the investor and each clearing member for defining amount payable and receivable of each account of the investor and clearing member. Settlement of daily position-based gain or loss is executed by transfer through the VSD’s margin deposit account at settlement bank.

3. As for settlement for contract execution, VSD shall execute the settlement at the final settlement date upon the following principle:

a) Settlement in cashes: VSD shall aggregate separate settlement obligations for each investor and each clearing member. Clearing member of paying party must transfer enough money to the member’s margin deposit account opened at the settlement bank for making settlement to clearing member of receiving party via VSD. Clearing member of receiving party shall make settlement to the investor immediately after it has received settlement from VSD.

b) Settlement by transferring underlying assets: clearing member of the seller must make transfer with adequate quantity and correct kinds of transferable underlying assets under derivative contract to the member’s margin securities account at the request of VSD.

Clearing member of the buyer only receives transferring assets after the settlement has been fully made at the request of VSD and then such assets shall be immediately allocated to the investors of the buyer.

4. VSD shall promulgate the rules on order and procedures of clearing, settlement and transferring assets when the contract is executed, methods and time of settlement after such rules have been approved by the State Securities Committee of Vietnam.

Article 20. Clearing member s margin account

1. VSD shall open margin deposit accounts under the name of VSD at the settlement bank (hereinafter referred to as the member’s margin deposit account) and margin securities accounts at VSD (hereinafter referred to as the member’s margin securities account) for managing the margins and fulfilling settlement obligations for the positions of holder of clearing membership.

2. The member’s margin deposit accounts which are opened at the settlement bank for each clearing member include:

a) Self-trading margin deposit account for managing margins for self-trading and market marking of that clearing member;

b) Customer s margin deposit account for managing margins of all customers of that clearing member;

c) Settlement account for making settlement of daily position-based gain or loss, settlement for executing contract signed by the clearing member and other settlements made by clearing member;

3. The member’s margin deposit account and the member’s margin securities account are used in the following cases:

a) Receive and return margins to clearing member. The margins on this account include the customer’s assets which are used by the clearing member as margins for positions of that customer;

b) Receive gain or pay for daily loss for positions of holder of clearing membership; make and receive settlement for contract execution; receive interests from bank deposits;

c) Receive and transfer underlying securities for contract execution (if the settlement is made by transferring underlying assets) for positions of holder of clearing membership.

4. The member s margin account must be set up and the clearing member’s assets must be managed separately from those of VSD; separately from those of other clearing member and separately from those of customer of that clearing member.

5. VSD can request the clearing member to provide at any time with detailed information of trading accounts, margin accounts, value and list of margins of each investor.

6. Cashes and derivatives from executing the rights of margin securities on the member’s margin account shall be allocated in accordance with the rules of VSD. VSD is not allowed to use the clearing member s margin deposits as term deposits. Interest of deposits shall be returned to the clearing member according to the interest rate of demand deposits announced by the settlement bank.

7. VSD shall establish a managing system with adequate information of changes of positions, daily position-based gain or loss, value of initial margin, value of required maintenance margin, value and list of margins according to each trading account of the investor and clearing member.

8. The State Securities Committee of Vietnam shall appoint a commercial bank as the settlement bank providing settlement services for derivative trading on the Stock Exchange according to criteria, order and procedures regulated by the law on securities with respect to registration, deposits, clearing and settlement of securities trading. The settlement bank shall have the following rights and obligations:

a) Establish an account system for managing margin deposits as prescribed in this Circular;

b) Punctually provide with adequate information of operations and detailed balance on margin deposit account at the request of VSD or the State Securities Committee of Vietnam;

c) Execute other rights and fulfill other obligations as regulated by the law on securities with respect to registration, deposits, clearing and settlement of securities trading.

Article 21. Margin of clearing member

1. The margin of clearing member made with VSD is executed as follows:

a) The clearing member must submit initial margin to VSD for the planned positions on his name before any trading is executed, except for matched sale-purchase transactions of the same trading account;

b) The clearing member shall make additional margins if total value of the margins cannot meet the value of required maintenance margin which is calculated by VSD for all positions on his name or withdraw the excess of the margins compared with the value of required maintenance margin according to the rules of VSD;

c) The rate of margins in cashes is executed in accordance with the rules of VSD provided that it shall not lower than 80% unless the securities margin is made for transfer when the contract is executed or the investor who is holding the position and sells the bond futures contract whose method of settlement is transfer of underlying assets must make margins in transferable assets. VSD shall calculate the required maintenance margins for portfolios on each trading account of the investor and total value of required maintenance margins for all positions of holder of clearing membership on trading session based on the value of initial margin, position-base gain or loss in combination with the assessment on maximum price fluctuation, the balance of positions, required margins in case the contract is executed under the method of transfer of underlying assets and other necessary factors as realized by VSD.

d) VSD shall determine and supervise, according to each actual period, the rate of required maintenance margin and total value of margins on each account of the investor and clearing member. In case this rate fails into the limits regulated in the rules of VSD, VSD can send warning to the clearing member and apply one of the following methods:

-Request the Stock Exchange to suspend trading on relevant trading accounts, except for matched sale-purchase transactions;

-Request the clearing member (applicable to self-trading accounts) or, via the clearing member, request the investor (applicable to the investor s accounts) to conduct matched sale-purchase transactions to reduce their positions and supplement margins.

2. The rules of VSD which is promulgated upon the approval of the State Securities Committee of Vietnam shall apply to determine kinds of margins, margin calculation methods and parameters of these methods, assets being accepted as margins, methods and period of margins, procedures for margin submission or withdrawal, initial margin rate, rate of margins in cashes, execution of rights of margin securities and other relevant contents.

Article 22. Margins

1. The investors and clearing members can use qualified cashes and securities as prescribed at Clause 2 hereof as margins.

2. Securities which shall be accepted by VSD and clearing members as the margins for derivative positions must satisfy the following conditions:

a) Belong to VSD’s list of assets for margins;

b) Are not warned, controlled or suspended from trading on the Stock Exchange; or securities issued by the organizations which are under the process of liquidation, dissolution, bankruptcy, consolidation or merging;

c) Are not pledged, blockaded or under the custody of VSD;

d) Are freely transferable securities and deposited on trading securities account at VSD; are under the ownership of the investor or clearing member;

D) Such securities must satisfy other conditions as prescribed in the rules of VSD.

3. VSD and clearing members shall publish the list of securities accepted as margins and discount rate of each kind of securities on their websites. In case the securities accepted as margins are changed, the investors and clearing members shall use cashes or other securities accepted as margins to replace for such changed securities at the request of VSD and clearing members.

4. Management of margins:

a) VSD and clearing members shall manage the margins of clearing members and the investors in accordance with regulations in Article 25, 26 of the Decree No. 42/2015/ND-CP;

b) The clearing member can only use the margins on the investor’s margin account for the purposes of making margin, ensuring settlement obligations, executing settlement for positions on corresponding trading account of that investor; not use such margins for ensuring or supporting the settlement or making settlement for other trading accounts including those owned by the only investor; not use such margins as ensured assets or to make settlement for other purposes or for the third party unless otherwise stipulated at point d, D hereof; not use such margins as ensured assets for his loans or investments. Interests of deposits shall be returned to the investors according to the interest rate of demand deposits announced by the settlement bank;

c) The investor s margins shall be separately managed, are not and shall be not considered as assets of clearing member including those which are registered as margins on the member’s margin account. In the event the clearing member faces bankruptcy, the investor s margins must be wholly returned to the investor after all settlement obligations of that investor have been fulfilled;

d) If the investor is incapable of settlement, the clearing member can use, sell or transfer the margins without the investor s approval. The clearing member shall send a written notice to the investor of settling his margins within one day before or after such margins are settled. The notice must include reasons, kinds of settled margins, methods and period for planned settlement (or settled methods and period) and planned value (or executed value).

D) VSD can use the margins of the investors and clearing members which have been submitted to VSD to support settlement for the positions of the investors and clearing members as regulated at Clause 4 Article 19 of the Decree No. 42/2015/ND-CP;

e) During the margin period, the investors and clearing members can still receive rights and benefits from the margin securities as regulated by the enterprise law and the law on securities. The investor s rights and benefits over the margin securities shall be ensured accordance with the rules of VSD.

5. While the margins are deposited on the margin accounts, the investors and clearing members shall not use such margins for transfer, donation, mortgage, pledging, deposit, collateral or registering as ensured assets or serving other purposes.

Article 23. Clearing fund

1. Clearing fund is set up from clearing members contributions in cashes or by securities accepted by VSD to serve the purpose of paying reimbursement and completing derivative trading on which names of clearing members are signed in the event that clearing members and their investors are incapable of fulfilling their settlement obligations. The rate of contributions in cashes made to the clearing fund shall be executed in accordance with the rules promulgated by VSD upon the approval of the State Securities Committee of Vietnam.

2. The clearing member shall make initial minimum rate of contribution to the clearing fund after VSD has accepted his registration for clearing membership.

3. Monthly, VSD shall, basing on trading scale, price fluctuation on trading market, financial liabilities, rate of risks and other targets, evaluate the scale of clearing fund and determine contribution obligations of each clearing member to the clearing fund as follows:

a) If the balance of contributions to the clearing fund exceeds mandatory contributions, clearing members shall receive the different amount;

b) If the balance of contributions to the clearing fund is lower than mandatory contributions, clearing members must make additional contributions for the different amount;

4. Clearing members shall make extra-additional contributions to the clearing fund in accordance with the rules of VSD upon the following cases:

a) Clearing members fall into warning status in accordance with the law on securities with respect to financial safety and the banking law with respect to capital safety;

b) Assets contributed by clearing members are blockaded or seized by the state competent authorities or upon the court’s decision;

c) Other cases reported by VSD and approved by the State Securities Committee of Vietnam.

5. Management of clearing fund:

a) Clearing member still remains his ownership over his assets contributed to the clearing fund and VSD shall manage such assets separately from those of VSD. Clearing members must enter into a commitment which allows VSD to have the entire rights of use including sales of assets contributed to the clearing fund for implementing obligations of the positions of holders of clearing membership;

b) If the contributions are made in cashes, VSD shall open a deposit account at the settlement bank for managing cashes contributed by clearing members to the clearing fund;

If the contributions are made in securities, VSD shall open a deposit account on VSD s name for managing securities contributed by clearing members. Dividends, coupons, interests and other rights and benefits accrued from contributed securities must be returned to clearing members after all relevant expenses and taxes have been deducted;

c) Interests from the cashes contributed to the clearing fund shall be allocated to clearing members in corresponding with contributed amount and period of each member after all relevant expenses have been deducted.

6. Refund of clearing fund

Clearing member can take back his assets contributed to the clearing fund when his clearing membership is terminated or he is no longer a clearing member.

Refund of clearing fund is executed only after VSD has deducted all payables (debt liabilities) and compulsory settlements for executing the positions on the name of that clearing member as regulated.

7. The rules promulgated by VSD upon the approval of the State Securities Committee of Vietnam shall apply to establishment, management and use of the clearing fund.

Article 24. Taking actions against incapability of settlement

1. Clearing members and their customers are incapable of settlement upon the following cases:

a) Make lately or deficiently settlements for position-based losses and those for contract execution as regulated by VSD;

b) Go bankrupt or file for bankruptcy in accordance with the law on corporate bankruptcy;

c) Other cases as regulated in the rules of VSD.

2. VSD shall use finances regulated at Clause 1 Article 27 of the Decree No. 42/2015/ND-CP to ensure the settlement obligations when clearing members and their customers are incapable of settlement. Use of finances shall conform to the following order:

a) Use the margins of clearing members and customers who are incapable of settlement;

b) If the margins cannot make up for settlement obligations, VSD shall:

-Use cashes contributed to the clearing fund of the clearing member who is incapable of settlement;

-Sell the margins and contributions in securities in the clearing fund of the clearing member who is incapable of settlement on the Stock Exchange via an appointed trading member under the price decided by VSD;

d) Use contributions of other clearing members in a certain ratio defined by VSD. In this case, VSD shall inform relevant clearing members of use of clearing fund right on the using date. The clearing member who is incapable of settlement shall return all used assets of the clearing fund and pay interests to other clearing members under the interest rate defined by VSD provided that it shall not exceed 150% of basic interest rate stipulated by the State Bank of Vietnam;

D) Use the fund of provisions for settlement risks and other legal capital sources of VSD in accordance with the rules of VSD.

3. In addition to use of finances regulated at clause 2 hereof, VSD can apply the following methods:

a) Request the clearing member to explain reasons of his incapability of settlement and provide with related information, list of his customers, customer identification information and information of customers margin accounts;

b) Coordinate with the Stock Exchange to limit or prevent opening new positions of which this member is the holder, except for matched sale-purchase transactions;

c) Request the clearing member to liquidate his positions as regulated at Clause 4 Article 19 of the Decree No. 42/2015/ND-CP;

d) Open trading accounts at the Stock Exchange to conduct transactions for closing positions of clearing member who is incapable of settlement as regulated at point a clause 4 Article 19 of the Decree No. 42/2015/ND-CP and conduct other actions and methods for preventing risks as regulated at clause 4 Article 19 and Article 28 of the Decree No. 42/2015/ND-CP.

4. If the investor is incapable of settlement, clearing member shall immediately inform VSD of positions and list of margins of that investor and take suitable actions, including:

a) Request the investor or clearing member shall execute mandatory closing of the positions or liquidation of positions for the investor s open positions;

b) Suspend receipt of trading orders for opening new positions from relevant investor; and cancel uncompleted trading orders of that investor;

c) Use, sell and transfer the margins of the investor to buy or use as ensured assets for loans for conducting settlement obligations for the investor s open positions. In case of deficiency, the clearing member shall use his margins to execute the investor’s derivative contracts;

d) The investor shall make reimburse the clearing member for the temporarily used margins and pay for all relevant expenses.

Chapter V

OBLIGATIONS OF PUBLISHING INFORMATION AND MAKING REPORTS

Article 25. Obligations of publishing information and making reports of derivative services trading organizations

1. Derivative services trading organizations shall send the following reports to the State Securities Committee of Vietnam:

a) Reports on operating status of derivative brokerage and self-trading (if any); derivative clearing and settlement (if any) as regulated by the State Securities Committee of Vietnam;

b) Other reports as regulated by the law on securities with respect to organization and operation of securities companies and margin managing companies.

2. Derivative trading organizations must publish information and sent reports to the State Securities Committee of Vietnam of the following matters:

a) Change of clearing members (if any);

b) Other cases as regulated by the law on securities with respect to organization and operation of securities companies and margin managing companies and information disclosure on the securities market and at request of the State Securities Committee of Vietnam.

Article 26. Obligations of publishing information of the Stock Exchange

1. The Stock Exchange shall publish the following information:

a) Preference price, ceiling price, floor price, opening price and closing price of each trading session and each trading date and negotiated price (if any);

b) The best bid price, the best selling price and corresponding volume placed for purchase or sales of each kind of derivative;

c) Other publishing information as regulated by the State Securities Committee of Vietnam.

2. The Stock Exchange shall frequently publish the quotation on its website with the following information:

a) Codes of listed derivatives;

b) Preference price, ceiling price, floor price, exercise price and volume of latest trading, highest trading price and lowest trading price of trading session, closing price; three (03) best bid prices and three (03) best selling prices;

c) Total exercise volume;

d) Other information regulated by the State Securities Committee of Vietnam.

3. The Stock Exchange shall publish information of cancelling listing or new listed derivatives upon the approval of the State Securities Committee of Vietnam.

4. The Stock Exchange shall publish information of trading members and market-making members, including:

a) Information of approving new trading members and new market-making members; suspending or terminating the membership or status of market-making members;

b) Information of violations, taking actions against violations of trading members and market-making members (if any);

c) Other information regulated by the Stock Exchange.

5. The Stock Exchange shall publish information of operations of derivative market, including:

a) Information of suspension of trading of derivatives market in case of force majeure or when any ominous symbol happens in trading; information of restoring trading for derivative contracts;

b) Information of change of price fluctuation, order limit and accumulated order limit (if any);

c) Information of amending or supplementing contents of the derivative contracts upon the approval of the State Securities Committee of Vietnam;

d) Other information as regulated by the State Securities Committee of Vietnam.

6. VSD shall provide the Stock Exchange with necessary information for publishing daily information, including:

a) Daily settlement price and final settlement price (if any);

b) Open interests of each kind of derivative on previous trading date;

c) Other contents as regulated by the State Securities Committee of Vietnam.

Article 27. Obligations of publishing information and making reports of VSD

1. VSD shall periodically submit the following reports to the State Securities Committee of Vietnam:

a) Reports on derivative clearing and settlement, reports on using settlement ensuring mechanism and reports on supervision and taking actions against violations of clearing members as regulated by the State Securities Committee of Vietnam;

b) Other reports as regulated by the State Securities Committee of Vietnam.

2. VSD shall send reports to the State Securities Committee of Vietnam within twenty-four (24) hours if one of the following extraordinary events happens:

a) Clearing members are incapable of settlement for derivative trading;

b) Suspension or termination of clearing membership.

c) Other cases as regulated by the law and at the request of the State Securities Committee of Vietnam.

3. VSD shall publish the following information:

a) Issuance or revocation of registration certificates or suspension of clearing membership; list of clearing members; information of violations of clearing members (if any);

b) Information of margins, position limit and other information as regulated by the law and at the request of the State Securities Committee of Vietnam.

Article 28. Time-limit for submitting reports

1. Periodical reports

a) Within five (05) days as of the ending day of month, applicable to monthly reports;

b) Within twenty (20) days as of the ending day of quarter, applicable to quarter reports;

c) Within forty-five (45) days as of the ending day of the first six months of the year, applicable to half-year reports;

d) Within ninety (90) days as of the ending day of the year, applicable to annual reports.

2. Reports on unexpected matters

a) Within twenty-four (24) hours, applicable to reports defined at Clause 2 Article 25; Clause 3, Clause 4 and Clause 5 of Article 26 of this Circular;

b) Within twenty-four (24) hours as of receiving date of request of the State Securities Committee of Vietnam.

3. Reports regulated in this Circular must be enclosed with electronic information files.

Chapter VI

IMPLEMENTATION PROVISIONS

Article 29. Effect

This Circular takes effect on July 01, 2016.

Article 30. Implementation organization

1. The State Securities Committee of Vietnam, Stock Exchange, VSD, derivative services trading organizations, trading members, clearing members and other organizations and individuals relating to derivative investment and trading and derivatives market in Vietnam shall implement this Circular.

2. Any amendment or supplement to this Circular shall be made upon decision of the Minister of Finance./.

For the Minister

The Deputy Minister

Tran Xuan Ha