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State Securities Commission announces roadmap for implementing CCP for the basic stock market

VHO - The State Securities Commission (SSC) has just announced the Plan to implement the central clearing counterparty (CCP) mechanism for the underlying stock market.

Báo Văn HóaBáo Văn Hóa19/07/2025

State Securities Commission announces roadmap for implementing CCP for the basic stock market - photo 1
The State Securities Commission has just announced the Plan to implement the central clearing counterparty (CCP) mechanism for the underlying stock market. Illustrative photo

According to the roadmap, in the first and second quarters of 2026, the State Securities Commission will coordinate with the Vietnam Securities Depository and Clearing Corporation (VSDC) to issue a Circular to replace Circular No. 119.2020.TT-BTC dated December 31, 2020 of the Minister of Finance providing guidance on securities registration, depository, and payment activities.

From the third quarter of 2025 to the fourth quarter of 2026, the Department of Economic and Financial Management will coordinate with the State Securities Commission and VSDC to issue a Circular replacing Circular No. 89.2019.TT-BTC dated December 26, 2019 of the Minister of Finance guiding accounting applicable to VSDC to guide accounting for accounting operations arising when implementing the CCP mechanism.

During the period from Q3.2025 to Q1.2026, the SSC will coordinate with VSDC and related units to prepare for the establishment of a VSDC subsidiary to perform the CCP function. In 2026, VSDC and its members will prepare to deploy the CCP mechanism for the basic stock market, which is expected to be officially deployed by Q1.2027 at the latest.

The implementation of the CCP mechanism will be an important step in the process of upgrading Vietnam's stock market.

During the period from Q3.2025 to Q1.2026, the SSC will coordinate with VSDC and related units to prepare to establish a subsidiary of VSDC to perform CCP functions.

From 2026, VSDC will have activities to prepare for the implementation of the CCP mechanism for the basic stock market such as: Training, coaching and testing with members; reviewing and preparing technical infrastructure to ensure readiness to meet the requirements for implementing the CCP mechanism... and by the first quarter of 2027, it is expected to officially implement the CCP mechanism for the basic stock market.

CCP is a mechanism applied to securities transactions, in which the company responsible for operating this mechanism (in the future, Vietnam Securities Clearing Company Limited) becomes an intermediary organization between the buyer and seller. That is, when implemented, each party participating in the securities transaction only has obligations to the CCP, not directly to the counterparty.

When a transaction is executed, the company executing the CCP becomes the buyer to all sellers and the seller to all buyers. Specifically, the CCP commits to deliver securities to the seller, and to pay money to the buyer. This mechanism will calculate the netting obligation for each party to reduce the number of transactions executed, thereby reducing the associated costs.

The key role of this mechanism is also to mitigate risk. If one party defaults, the CCP ensures that the transaction is completed through a guarantee fund and other safety mechanisms, helping to increase liquidity and stability in the market.

Source: https://baovanhoa.vn/kinh-te/ubcknn-cong-bo-lo-trinh-trien-khai-ccp-cho-thi-truong-chung-khoan-co-so-153815.html


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