How is the form of request for voluntary termination of derivatives trading activities regulated?

Form of request for voluntary termination of derivatives trading activities is made according to Form No. 03 Appendix issued with Decree 158/2020/ND-CP.

What documents are included in the dossier for voluntary termination of derivatives trading activities?

Documents for voluntary termination of derivatives trading activities are specified in Clause 1 Article 7 Decree 158/2020/ND-CP as follows:

Voluntary termination of derivatives trading activities

1. Derivative securities trading organizations that voluntarily terminate derivative securities trading activities must submit documents to the State Securities Commission. The dossier includes the following documents:

a) Application for termination of derivatives trading activities according to Form No. 03 Appendix issued with this Decree;

b) Resolution of the General Meeting of Shareholders, Council of Members or Decision of the owner on terminating derivatives trading activities and approving the plan to handle related issues related;

c) Plan for handling valid derivatives trading contracts, including plan for handling customer accounts and margin assets.

2. Dossier requesting voluntary termination of derivatives trading activities is made in 01 original set. In case the documents in the file are copies, they must be copies from the original number or certified. This dossier is sent to the State Securities Commission directly or by post or via the online public service system according to the instructions of the Minister of Finance.

Thus, according to regulations, derivatives trading organizations that voluntarily terminate derivatives trading activities must submit documents to the State Securities Commission.

Dossier for voluntary termination of derivatives trading activities includes the following documents:

(1) Application for termination of derivatives trading activities;

(2) Resolution of the General Meeting of Shareholders, Council of Members or Decision of the owner on terminating derivatives trading activities and approving a plan to handle related issues;

(3) Plan for handling valid derivative securities trading contracts, including plan for handling customer accounts and margin assets.

How long does a derivatives trading organization have to announce about conducting procedures to terminate operations?

The time limit for disclosing information on carrying out procedures to terminate derivatives trading activities is specified in Clause 5 Article 7 Decree 158/2020/ND-CP as follows:

Voluntary termination of derivatives trading activities

…

4. Within 07 working days from the date of receipt of complete and valid documents, the State Securities Commission shall issue a document permitting procedures to voluntarily terminate derivatives trading activities. In case of refusal, the State Securities Commission must respond in writing and clearly state the reason.

5. From the date of receiving the document from the State Securities Commission permitting the conduct of procedures to terminate derivatives trading activities:

a) Within 24 hours, the derivatives trading organization is responsible for disclosing information about the conduct of procedures to terminate derivatives trading activities;

b) Within 05 working days, the public securities company Announce information about the plan, deadline and roadmap for handling valid contracts and send notices to each of its customers about the plan for handling contracts with customers. The processing time must ensure that customers have at least 45 days to process positions and transfer margin assets, but must not exceed 60 days from the date of information disclosure.

6. During the process of terminating operations, derivative securities trading organizations are responsible for:

a) On a monthly basis or at the request of the State Securities Commission, report and disclose information about its status and related activities; Do not sign new derivatives trading contracts; terminate all derivatives trading activities, except for the cases specified in points b, c, d of this clause;

Accordingly, within 24 hours from receiving the document from the State Securities Commission permitting procedures to terminate derivatives trading activities, the derivatives trading organization is responsible for disclosing information about conducting procedures to terminate business activities.