The Ministry of Finance is currently developing a draft Circular to replace Circular No. 119/2020/TT-BTC dated 31 December 2020, which regulates the activities of registration, depository, clearing, and settlement of securities (as amended by Circular No. 68/2024/TT-BTC, Circular No. 14/2025/TT-BTC, and Circular No. 18/2025/TT-BTC). The issuance of the replacement Circular stems from urgent political, legal, and practical requirements in operating the
market in the new phase.
Politically and legally, the Government and the National Assembly have set the objective of developing a safe, transparent, efficient, and sustainable capital market in line with Resolution No. 86/NQ-CP and Resolution No. 101/2023/QH15. In particular, the Stock Market Upgrade Program identifies advanced clearing and settlement infrastructure as a key solution to support the central clearing and settlement mechanism (CCP). Moreover, issuing the new Circular is necessary to provide detailed guidance on the new provisions amended and supplemented under Law No. 56/2024/QH15 and Decree 245/2025/ND-CP.
Practically, after more than five years of implementation, Circular No. 119/2020/TT-BTC has given rise to cases not covered by existing rules. The deployment of the new information technology system (KRX) requires standardizing the registration, depository, clearing, and settlement processes for securities transactions. The draft Circular aims to comprehensively revise related regulations to ensure consistency, feasibility, and effectiveness in implementation.
The draft Circular comprises 9 chapters and 67 articles, focusing on comprehensively improving operating procedures, reducing administrative procedures, and laying a legal foundation for modern market operation mechanisms, with the following core contents:
First, revise and refine the provisions governing securities registration.
Second, revise and refine the provisions governing securities depository.
Third, revise and refine the provisions on clearing and settlement of securities.
Fourth, add new provisions on an instantaneous settlement method per transaction for listed corporate bonds similar to private placements to unify market-area management and reduce the risk of settlement disruption when CCP is not applied under Decree 245/2025/ND-CP, and to avoid reliance on a settlement fund when the value of listed corporate bonds is substantial.
Fifth, revise and refine the provisions on the management of settlement funds, clearing funds, and risk buffers. Accordingly, improve the management and use of the settlement fund before CCP implementation, during CCP implementation, and regulate how contributions to the settlement fund by depository members are treated when the fund is replaced by a clearing fund; specify the form, level of contributions, and management and use of clearing funds to cover all scenarios. Add provisions on the establishment, management, and use of the operational risk buffers for VSDC and VSC in line with Decree 245/2025/ND-CP.
Sixth, revise and refine the regulations on reporting and administrative procedures to implement the Government’s digital transformation policy, aiming to reduce administrative burdens and facilitate enterprises, organizations, and individuals involved in the implementation.
The draft Circular is being posted on the Ministry of Finance’s electronic information portal for public consultation as required. The Ministry respectfully invites agencies, organizations, and individuals to study and provide feedback to finalize the draft Circular, ensuring feasibility and effectiveness in implementation.
An Thái
