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Q&A FOR SECURITIES COMPANY: 1 What rights and obligations do securities firms have when becoming member of HOSE?
Trading members in HOSE have rights and obligations which is defined in Article 6 and Article 7 of Member Regulation issued together with Decision 04/2013/QD-SGDHCM dated 20/05/2013 signed by the CEO of HOSE, as follows:
Rights of members:
1 Performing transactions through the trading system of HOSE as prescribed.
2 Using equipments, infrastructure and services provided by HOSE under the contract signed with the HOSE.
3 Getting and using information under the agreement signing with HOSE.
4 Collecting fee for the service provided to customers under the provisions of the Ministry of Finance.
5 Suggesting HOSE as mediator when disputes arise relating to securities trading activities of members.
6 Proposing and making recommendations concerning the activities and operations of HOSE and HOSE’s members.
7 Voluntarily terminating membership after the approval of HOSE.
8 Other rights prescribed by law.
Obligations of Members:
1 Compliance with the provisions in Article 71 of the Securities Act, the provisions of relevant laws and regulations and rules issued by HOSE.
2 Maintaining the conditions stipulated by HOSE for trading members
3 Under inspection and surveillance of HOSE.
4 Paying fees as prescribed by the Ministry of Finance and service charges incurred during operations in HOSE.
5 Providing edaquate information about the transaction and the securities traded on the HOSE; updating the regulations, rules and guidelines for investors.
6 Strictly controlling the investors’ placing of order to ensure compliance with laws and regulations and having the obligation to pay for the trading transaction has been established.
7 When using information, transaction data copyrighted by HOSE, members must cite the source; members are not allowed to provide information, transaction data of HOSE to third parties under any circumstances without the prior written approval of HOSE.
8 Written report and giving additional documents related to any change compared with member’s original registration document.
9 Compliance with reporting regime and disclosing information under the provisions of Member Regulation, the provisions of relevant laws and other regulations issued by HOSE.
10 Supporting other members and HOSE at the request of HOSE when necessary.
11 Notifying for HOSE when members discovered violations specified in Clause 1 of this Article.
12 Responsible for all operations of brokers and must report to HOSE as soon as brokers withdrawn securities practice certificates.
13 Other obligations prescribed by law.
2. How to be a securities member of HOSE? Securities members should meet what conditions and procedures for approval of membership?
I. Condition for membership:
1 Securities company which has broker license from SSC.
2 Being approved as depository member by VSD
3 Having qualified technical facilities for the operation include:
a Having information technology systems to meet the requirements of HOSE;
b Having softwares for the transactions operation and payment that meet the technical requirements and services under the laws and regulations of HOSE.
c Joining data transmission as requested by HOSE
d Having backup system in incident of server, tranmssion lines, power grid
e. Having devices provide transaction information of HOSE serving investors;
f Having a website and other media publishing information to ensure disclosure of trading transactions and information published by securities companies
4 BOD and staffs have the capacity and operational experience in the field of finance, securities, and information technology staffs to meet the conditions specified:
a Director (CEO), Deputy Director (Deputy CEO), the staffs from internal audit and internal control department to meet the legal conditions specified for this title;
b IT staffs must be qualified to manage, operate and monitor information technology systems, have expertise in information technology and professional certifications appropriate for each following positions: network management, operating systems administration, information technology security and database administrators
5 Having broker in HOSE
6 Whereas the securities company used to be a member of HOSE, it is only approved to membership re-register:
a After two (02) years from the date of voluntary termination of membership.
b After five (05) years from the date of mandatory termination of membership.
7 Other conditions stipulated by HOSE
II. Procedures for approval of members:
1 Securities companies registered as members of HOSE must meet the conditions specified in Article 3 of the Member Regulation and submission register for HOSE under the provisions of Article 4 of Member Regulation.
2 Within one (01) working day from receipt of the registration documents, HOSE discloses about receiving member registration documents on the webiste.
3 Within eight (08) working days from the date of receipt, HOSE requires seurities company fufill additional documents (if necessary). During the membership review time, if there are any changes compared to the original documents, securities firms have to implement the documents according to regulations.
4 Within three (03) working days from the date of receipt of full and valid documents, and written statements of the securities firms in establishing at least 01 qualified data transmission (channel leased or dial the phone) connect to HOSE and successfully installed the software transmits transaction data, HOSE will notice in writing to approve securities firm to install machine and equipments and test at trading floor.
5 Within ten (10) working days from the date that securities firm has been done and fullfilled all the requirements of the transaction test, successfully established a connection line to receive data as required by HOSE, HOSE will examine the material and technical basis, the implementation of process issued by the securities firm. HOSE will notifiy in writing the approval in principle to the securities firm, and inform the fees that securities firm has to pay and prepartion needed for trading in HOSE. In case of disapproval, HOSE shall state in writing the reasons for refusal.
6 Within five (05) working days from the date of approval in principle, securities firm must complete the following tasks:
a Supplying all required document in valid form to prove the readiness for deployment trading (if required supplementary from HOSE);
b Prepare the working conditions for brokers at HOSE;
c Signed agreements to receive and use information from HOSE and other supply contracts to provide other services (if any);
d Signing up for official trading day.
7 Within three (03) working days from the date the securities firm reports completed preparations to deploy trading as defined in paragraph 6 this Article, HOSE will have a decision to approve securities firm as member and disclosure on the website. In case of refusal members, HOSE will send documents to securities firm stating the reason.
8 HOSE may refuse to approve membership as:
a Registered documents have false information;
b Securities firms registered as member not fully paid membership fees as prescribed;
c Do not meet requirement about facility.
d After required date, securities firms do not complete the preparatory work as specified in paragraph 6 this Article;
e. Other cases stipulated by HOSE.
3. How is the disclosure information of members?
Member has to disclose information and comply with Circular No. 52/2012/TT-BTC dated 05/4/2012 of Ministry of Finance providing guidelines on information disclosure on stock market and Disclosure Regulations of HOSE issued together with Decision 07/2013/QD-SGDHCM dated 07.24.2013 by HOSE’s CEO.
4. In the case of securities firms are both members of HOSE and listed companies of the HOSE, what regulation will be applied for the quarterly and annual financial statements?
In this case, securities members have to make financial reports prescribed Circular No. 52/2012/TT-BTC dated 05/4/2012 of Ministry of Finance providing guidelines on information disclosure on stock market and as defined in Member Regulation.
5. How can members and listed companies on HOSE update newest and fastest regulation? Does HOSE have any support for members and listed companies?
Members and listed companies can update rapidly latest law related to securities and stock market on the website of SSC and HOSE. When necessary, the firm can directly contact with Member Regulations Department or Listed Department of Hose for specific instructions. In addition, HOSE also regularly disseminates and provides guidelines about new relevant legal provisions to the members and listed companies. HOSE
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