The Viet Nam Securities Depository (VSD) could become the supervisor of trading on the derivatives market, along with the State Securities Commission (SSC) and the two local stock exchanges. — Photo cafef.vn

The Viet Nam Securities Depository (VSD) could become the supervisor of trading on the derivatives market, along with the State Securities Commission (SSC) and the two local stock exchanges.

The idea was raised during feedback being collected by the SSC for a circular that would replace Circular 13/2013/TT-BTC dated January 25, 2013 by the finance ministry on monitoring securities trading.

VSD would be able to monitor depository and clearing members to see whether they follow regulations on securities and the securities market, keep track of changes in margin lending in the accounts of investors and clearing members, and supervise investors’ positions in the derivatives market.

VSD would have to develop regulations on clearing and a settlement mechanism for the operation of the derivatives market, manage and monitor the amount of margin lending in the market and adjust the limit of positions to investors and clearing members.

In addition, individuals and organisations under the management of VSD will be obliged to submit reports, materials and data on settlement and clearing activities to VSD so that the agency is able to carry out its work as a supervisor. — VNS