Hanoi (VNS/VNA) - The State Securities Commission of Vietnam (SSC) has officially announced a detailed plan to implement a central clearing counterparty (CCP) mechanism for the equity market, aiming for full operation by the first quarter of 2027.

The roadmap marks a crucial step in the country’s efforts to modernise its market infrastructure, enhance investor protection and align with international standards.

Speaking at a conference on market development held by the SSC and Vietnam Securities Depository and Clearing Corporation (VSDC), SSC Deputy Chairman Bui Hoang Hai emphasised the significance of CCP in achieving sustainable market elevation.

He noted that since Vietnam adopted the non-pre-funding (NPF) model, over 50 per cent of foreign trading transactions had used the mechanism, demonstrating growing alignment with international practices.

According to the roadmap, the SSC is set to make significant strides from the first to the second quarter of 2026. In collaboration with the VSDC, they will issue a new circular to replace Circular 119/2020/TT-BTC, originally dated December 31, 2020.

This updated regulation will provide comprehensive guidance on the registration, custody and settlement of securities transactions, streamlining operations in the market.

From the third quarter of 2025 through the fourth quarter of 2026, accounting regulators will join forces with the SSC and VSDC to introduce a revised circular that will replace Circular 89/2019/TT-BTC, dated December 26, 2019.

This initiative will enhance accounting practices for VSDC, ensuring effective management of transactions arising from the implementation of the CCP mechanism.

Additionally, between the third quarter of 2025 and the first quarter of 2026, the SSC will work with VSDC and other stakeholders to lay the groundwork for establishing a subsidiary.

This new unit will focus on executing the CCP function, further strengthening the market's infrastructure.

In 2026, VDSC will conduct in-depth training for market participants, upgrade relevant IT systems and run simulation tests to ensure operational readiness.

Full-scale CCP implementation is targeted for the first quarter of 2027.

Chairwoman of the SSC Vu Thi Chan Phuong highlighted that Vietnam’s goal was not merely to reach emerging market status, but to maintain it. She called for continued efforts to improve transparency, strengthen legal frameworks and build trust among both domestic and international investors.

Vietnam currently boasts the highest 10-day average trading value among Southeast Asian markets, which signals robust investor engagement.

The implementation of the CCP mechanism is expected to mark a pivotal advancement, effectively dismantling many technical and legal barriers, according to Phuong. This initiative will significantly enhance transparency, safety and efficiency within the Vietnamese securities market.

𒅌 As a result, it will create a more favourable environment for the market's upgrade in the near future./.