A Part from Settlement Procedure Vn Stock Market
1. Overview and purposes of settlement procedure.
The clearing and settlement process is a series of complex tasks that begin with trade confirmation and continue through the clearing process up to the actual settlement of a trade. Clearing and settlement is the final step for analyzing the trading process. All of its processes and procedures are specified in the Guideline on Securities Clearing and Settelement promulgated with Decision No.57/QD-VSD dated 8 May 2012 by Chief Executive Officer of VSD. In comparision with the direct transactions between two parties, the settlement procedure brings a number of advantages to investors. First of all, investors can save time as well as money especially big transactions because the clearing procedure is occured quickly thanks to the participants of one another party. In addition, Settlement procedure helps to create an investor-friendly environment by pushing the development of a strong and liqiud market, allowing market participants (both borrowers and investors) to invest in longer-term periods. More importanly, the clearing and settlement process ensures the effectiveness and efficiency of the system, which is to bring investors together through provided settelment infrastructures by capital markets. As a result, the investors can access to lots of opportunities every day even every hour. 2. The clearing and settlement procedure model. Seller: Open a depository account | Prior to trade day↓ | Buyer: Open a depository account | VSD: adjust ownership information on depository accountSettlement banks: make payment | Trade day↓ | VSD: adjust ownership information on depository accountSettlement banks: make payment | Stock and cash will move between both participants simultaneously | T + 1T + 2T + 3 | Stock and cash will move between both participants simultaneously |
At the beginning of settlement procedure, both buyers and sellers are required to open the depository security accounts in Vietnam Securities
The clearing and settlement process is a series of complex tasks that begin with trade confirmation and continue through the clearing process up to the actual settlement of a trade. Clearing and settlement is the final step for analyzing the trading process. All of its processes and procedures are specified in the Guideline on Securities Clearing and Settelement promulgated with Decision No.57/QD-VSD dated 8 May 2012 by Chief Executive Officer of VSD. In comparision with the direct transactions between two parties, the settlement procedure brings a number of advantages to investors. First of all, investors can save time as well as money especially big transactions because the clearing procedure is occured quickly thanks to the participants of one another party. In addition, Settlement procedure helps to create an investor-friendly environment by pushing the development of a strong and liqiud market, allowing market participants (both borrowers and investors) to invest in longer-term periods. More importanly, the clearing and settlement process ensures the effectiveness and efficiency of the system, which is to bring investors together through provided settelment infrastructures by capital markets. As a result, the investors can access to lots of opportunities every day even every hour. 2. The clearing and settlement procedure model. Seller: Open a depository account | Prior to trade day↓ | Buyer: Open a depository account | VSD: adjust ownership information on depository accountSettlement banks: make payment | Trade day↓ | VSD: adjust ownership information on depository accountSettlement banks: make payment | Stock and cash will move between both participants simultaneously | T + 1T + 2T + 3 | Stock and cash will move between both participants simultaneously |
At the beginning of settlement procedure, both buyers and sellers are required to open the depository security accounts in Vietnam Securities