The Ministry of Industry and Trade proposes regulations on the conditions for establishing a commodity exchange.
According to the draft, enterprises establishing a commodity exchange must meet the following conditions:
a) Being a business established and operating in accordance with the laws on enterprises;
b) Must have a minimum charter capital of VND 500 billion (five hundred billion dong). For commodity exchanges within international financial centers, the minimum charter capital is VND 1,500 billion;
c) Having operating regulations that comply with the provisions of this Law;
d) Having an organizational structure and management and operational system that meets the requirements of the operation;
According to the draft According to the Law on Commodity Derivatives Trading, a Commodity Exchange is an organization established and operating in accordance with the provisions of this Law, performing the functions of listing, organizing, managing, and supervising the trading of commodities and commodity derivatives through a centralized trading system.
e) Having a team of managers and professional staff who meet the required standards in terms of qualifications and experience;
f) Having an information technology system that meets the requirements for safety, security, continuity, and connectivity with state management agencies;
g) Having risk management regulations, trading regulations, and commodity listing regulations that comply with legal regulations and international practices;
h) There is a feasible and effective operational plan.
The government will specify the details of the conditions stipulated above.
Documents and procedures for issuing a business establishment license.
The application dossier for a license to establish a Commodity Exchange includes:
- Application for a business establishment license;
- Draft operating regulations of the Commodity Exchange;
- The project to establish a commodity exchange, including its organizational model, management structure, and operational plan;
- Business registration certificate or documents proving financial capacity;
- Documents describing the information technology system;
- Criminal record check, copies of diplomas and certificates of the manager/director;
- Trading regulations, risk management regulations, and commodity listing regulations.
The draft states that the Ministry of Industry and Trade will review the application and issue a license to establish a commodity exchange within 60 days from the date of receiving a complete and valid application.
In case of refusal to grant a license, the Ministry of Industry and Trade must provide a written response stating the reasons.
The government shall specify in detail the documents, procedures, and processes for granting, re-granting, amending, supplementing, and revoking licenses for the establishment of commodity exchanges.
Rules of operation of the Commodity Exchange
Commodity exchanges must issue operating regulations, approved by the Ministry of Industry and Trade, as a basis for organizing and operating the derivatives trading market.
The operating regulations of the Commodity Exchange stipulate the main contents regarding:
- Organizational structure, governance and management; internal control system and risk management;
- Conditions, rights, and obligations of different types of members;
- Transaction procedures, methods, and order matching principles;
- Mechanisms for escrow, clearing, payment, and goods delivery;
- Mechanisms for monitoring transactions, disclosing information, and managing data;
- Risk management, system security, and incident handling;
- Managing members and coordinating with state management agencies;
- Dispute resolution; amendment and supplementation of the Articles of Association; sample specifications for transaction contracts.
Rights of the Commodity Exchange
Organizations trading in commodities and commodity derivative contracts must be approved by the competent authority.
Decide on trading mechanisms, trading hours, and trading methods that comply with legal regulations and international practices.
Issue operating regulations, transaction regulations, codes of conduct, and other internal regulations in accordance with the law.
Determine transaction fees, service fees, and other charges in accordance with regulations.
Approve or reject membership of the Commodity Exchange as per regulations.
Membership may be temporarily suspended or terminated for members who violate the rules.
It is linked to foreign commodity exchanges in accordance with the provisions of this Law.
Transactions may be suspended or canceled in cases of serious violations or systemic risks.
Members and investors are required to provide information and explanations regarding their trading activities when necessary.
Other rights as prescribed by law.
Responsibilities of the Commodity Exchange
Maintain full compliance with the conditions for establishment and operation as stipulated in this Law.
Operating the exchange safely, continuously, transparently, fairly, and in compliance with international standards.
Listed goods and commodity derivative contracts must ensure quality, origin, and compliance with standards.
Publicly and promptly disclose information on transaction prices, transaction volumes, transaction regulations, and other information as required by law.
Transaction monitoring aims to detect and prevent violations such as price manipulation, fraud, and money laundering.
Implement risk management measures, including position limits, price volatility limits, and automatic trade halt mechanisms.
Coordinate with state management agencies in inspection, examination, and supervision work.
Connecting real-time transaction data with government regulatory agencies.
Regular and ad hoc reports on trading activities are required.
Organize training, awareness campaigns, and disseminate knowledge about commodity derivatives trading.
Fulfill other obligations as prescribed by law.
Suspension of operations and revocation of establishment license.
According to the draft, commodity exchanges will be temporarily suspended from operation in the following cases:
- Does not meet the operating conditions stipulated in this Law.
- Serious violations of risk management regulations, causing market instability.
- Failure to comply with reporting requirements and provide information as stipulated.
- At the request of competent state authorities for reasons of national security and public order.
The draft clearly states that the maximum suspension period is 6 months. After the suspension period, if the Commodity Exchange rectifies the violations, the Ministry of Industry and Trade will decide whether to allow it to resume operations.
The license to establish a commodity exchange is revoked in the following cases:
- The commodity exchange voluntarily ceased operations.
- The temporary suspension period has expired without the violation being rectified.
- Serious violations of the law regarding commodity derivatives trading.
- The license was issued based on forged documents.
- Other cases as prescribed by law.
Any temporary suspension or revocation of a license must be publicly announced, and a plan for handling the situation must be in place to protect the rights of investors.
The draft policy document for the Law on Commodity Derivatives Transactions is currently open for public comment on the Ministry of Industry and Trade's electronic portal.
Source: https://baochinhphu.vn/dieu-kien-thanh-lap-so-giao-dich-hang-hoa-10226022516362343.htm
Comment (0)