On May 05, 2015, the Government issued the Decree No. 42/2015/ND-CP on derivatives and the derivatives market. Under this Decree, The derivative business of an securities business institution must have a certificate of eligibility for derivative business granted by the State Securities Commission.

Specifically, for derivative dealing: being a securities company having a charter capital or an equity capital of at least six hundred (600) billion VND; For derivative brokerage: Being a securities company having a charter capital or an equity capital of at least eight hundred (800) billion VND and licensed to conduct derivative dealing; For derivative consultancy: Being a securities business institution having a charter capital or an equity capital at least equal to the legal capital prescribed by the securities law; In case of having made business registration for all operations of derivative consultancy, brokerage and dealing, a securities company must have a charter capital or equity capital of at least eight hundred (800) billion VND.

Besides, these securities business institutions must be not in the process of consolidation, merger or dissolution, or placed under control or special control, or subject to operation suspension or termination under a decision of a competent agency.

The provision of the derivative transaction clearing or payment service by a securities company, commercial bank or foreign bank branch must have a certificate of eligibility for provision of the derivative transaction clearing or payment service granted by the State Securities Commission. For a direct clearing member: Being a commercial bank having a charter capital or an equity capital of at least five (5) trillion VND; or a securities company having a charter capital or an equity capital of at least nine hundred (900) billion VND; For a general clearing member: Being a commercial bank having a charter capital or an equity capital of at least seven (7) trillion VND; or a securities company having a charter capital or an equity capital of at least one thousand and two hundred (1,200) billion VND.

This Decree takes effect on July 1, 2015.

Source: luatvietnam.vn