According to the Ministry of Finance, this is a breakthrough in the modernisation of the bond trading system in accordance with international practices. It also helps accelerate the process of international integration of the market, creating a prerequisite for the development of cross-border bond payment services.
Under the new payment model, payment for transactions of G-bonds listed on stock exchanges is carried out using the mode of payment according on each transaction.
Based on the data provided by the stock exchanges, the VSDC identifies the payment obligation of each relevant party and sends the payment information to the SBV.
The transfer of G-bonds is implemented on VSDC’s system on the basis of transferring G-bonds between depository accounts of organisations and ensuring the principle that the selling side has sufficient bonds to be transferred on the payment date and the purchasing side has enough money to pay for the G-bond transactions.
The cash payment for G-bond transactions between organisations, which perform direct payments via the SBV, is conducted through the inter-bank online payment system.
The State Securities Commission of Việt Nam decides the payment date for G-bond transactions after reaching a consensus with the SBV. The VSDC is responsible for guiding payment steps and procedures for G-bond transactions.
Source: VNS