A SECURITIES INVESTMENT FUND MANAGEMENT COMPANY MAY OPEN 2 GENERAL TRADING ACCOUNTS TO MANAGE INVESTMENT PORTFOLIOS
The Circular No. 58/2021/TT-BTC providing guidance on a number of articles of the Decree No. 158/2020/ND-CP dated December 31, 2020 of the Government on derivatives and the derivatives market is promulgated by the Ministry of Finance on July 12, 2021.
Specifically, an investor must sign a contract to open a derivatives trading account with a trading member. A securities investment fund management company may open multiple derivatives trading accounts at each trading member as follows: The company may open 02 general trading accounts under its name to manage the investment portfolios for entrusting investors, of which one is for derivatives trading for domestic entrusting investors, another for derivatives trading for foreign entrusting investors.
Also, the securities investment fund management company may open 01 derivatives trading account for each investment fund or securities investment company managed by the securities investment fund management company under the name of such investment fund or securities investment company at each trading member.
Besides, a clearing member shall open margin deposit accounts for investors in the name of such clearing member and is responsible for managing margin deposits of the investors separately. The clearing member opens for each investor 01 margin securities account to manage positions, margin obligations, collateral value, and transferable assets as well as to fulfill settlement obligations for the position on such investor's trading account.
This Circular takes effect on August 27, 2021.
