Chương III Quyết định 87/QĐ-UBCK : Quy định về ký quỹ, thế chấp tài sản và xử lý tài sản thế chấp

Chapter III

REGULATIONS ON THE MARGINS, COLLATERAL AND THE SETTLEMENT OF COLLATERAL

Article 5. Initial margin requirement, maintenance margin requirement

1. Initial margin is decided by the securities company but not lower than 50%

2. Maintenance margin is decided by the securities company but not lower than 30%

3. Depending on the developments of the securities market, the State Securities Commission may adjust the margin specified in Clause 1 and 2 this Article.

Article 6. Time for determination of margin

1. At the end of the trading day, securities company shall determine the margin of each margin account with the prices of margin securities specified in Clause 4 Article 2 this document.

2. The specific time for determining the margin of a margin account shall be agreed upon in writing by the securities company and the client on the basis of ensuring the principles specified in Clause 1 this Article.

Article 7. Margin call

1. The client shall ensure that the margin does not fall below the maintenance margin requirement. If the margin of the margin account of the client falls below the maintenance margin requirement, the securities company shall issue a margin call to the client by the methods agreed in the margin account contract. The client must post more collateral within the time limit imposed by the securities company but such time limit must not exceed 03 working days. The specific time limit shall be agreed upon by the securities company and the client on the basis of the margin account contract.

2. From the date on which the margin call is received, the client shall sell the securities, post more cash or collateral in order to meet the maintenance margin requirement, the specific rate shall be decided by the securities company and the additional cash or collateral shall be posted as follows:

a) If the client posts more securities, the value of additional securities is calculated as follows:

b) If the client posts more cash, the additional cash is calculated as follows:

Article 8. Settlement of collateral

1. The securities company may sell pledged securities in the margin account of the client when that client fails to post or adequately post additional collateral within the period requested by the margin call.

a) If the client fails to post or adequately post additional collateral , depending on whether the value of the collateral is smaller or bigger than the value of total securities in the margin account, the securities company may liquidate a part or all the pledged securities;

b) The securities company shall notify the client before liquidating the pledged securities and after liquidation, the securities company shall send the result of the margin securities liquidation to the client using the method agreed upon in writing between the securities company and the client.

2. If the securities company liquidates all securities in the margin account at the client’s request or when issuing the margin call, the client may only draw the residual amount (if any) earned from the sale of the securities in the margin account after the debit balance is deducted.

3. In case the equity balance of the client after liquidation is not enough to repay the debit balance and the client fails to repay the residual loan as agreed in the margin account contract, the securities company shall collect the debt according to the method agreed in the margin account contract and the provisions of law.