Clearstream Signs MoU with Vietnam Securities Depository

International Central Securities Depository (ICSD) Clearstream announced this Monday that it has signed a Memorandum of Understanding (MOU) Memorandum of Understanding (MOU) A memorandum of understanding (MOU) is defined as a nonbinding agreement between two or more parties that outlines the terms and details of an understanding. This includes each parties’ overall requirements and responsibilities. An MOU is seen as the first stage in the formation of a formal contract between two or more parties. These contracts are used throughout many industries, between companies, authorities, regulators, and individuals.At its core, an MOU is not legally binding though is view A memorandum of understanding (MOU) is defined as a nonbinding agreement between two or more parties that outlines the terms and details of an understanding. This includes each parties’ overall requirements and responsibilities. An MOU is seen as the first stage in the formation of a formal contract between two or more parties. These contracts are used throughout many industries, between companies, authorities, regulators, and individuals.At its core, an MOU is not legally binding though is view Read this Term) with the Vietnam Securities Depository (VSD), the sole CSD that provides post-trade services for Vietnam's securities market.

Under the MoU, the two CSDs have agreed to assess the connection between Vietnam’s securities market and Clearstream’s international post-trade network, according to the statement published by the ICSD today.

Clearstream to help develop Vietnam's finance market

Furthermore, the agreement between the two depositories aims to help foster the development of the Vietnamese financial market, as well as promote cross-border investment.

The MoU was signed by Philippe Seyll, CEO Clearstream Banking S.A., and VSD Chairman, Son Nguyen. The document was signed in the presence of the Chargé d’affaires a.i. of the Embassy of Luxembourg to Vietnam, Marc de Bourcy, and the Chairman of Vietnam State Securities Commission, Tran Van Dung.

Commenting on the memorandum of understanding, Jan Willems, Head of Global Markets at Clearstream, said in a press release: “We look forward to exploring a partnership with VSD.

“The Memorandum of Understanding is in line with our Asia strategy: having been active in the Asian markets for more than 30 years now, Clearstream has constantly been developing its footprint and extending its market network in the region.”

Clearstream is owned by Deutsche Börse AG. The company provides post-trade services for financial services participants across all asset classes. It is one of two European International central securities depositories.

“The MoU signing has marked a closer relationship between Clearstream and VSD. We value this partnership and look forward to working closely together for the benefits of VSD as well as the entire Vietnamese financial market,” Duong Ngoc Tuan, Senior Managing Director of VSD added in the press release.