KRX Securities Settlement to Advance by One-hour From July 5, 2010
The Korea Exchange (“KRX”) and the Korea Securities Depositary announced that they will begin to settle the trades in KOSPI Market and KOSDAQ Market at 15:00 hours from July 5, 2010.
Under the existing system, the KRX begins the delivery of securities and transfer of settlement payments to the clearing members to whom they are due after the settlement deadline (16:00 hour). With the implementation of this amended procedure, the delivery of settlement securities and transfer of settlement payments begin at 15:00 hour on the settlement day.
It should be noted that the KRX plans to advance the time of delivery of settlement securities and transfer of settlement payments further to 09:00 hour on the settlement day in July 2011.
By advancing the delivery/transfer time of settlement securities and settlement payments, it is expected that the settlement process would be expedited and the settlement reliability would be improved as a result of dispersing the settlements.
It will alleviate the setback of large volume of settlements accumulating at the settlement deadline of 16:00 hour.
Furthermore, by allowing the receipt of the securities and payments early in the day, it will help the member companies and investors to improve the operational efficiency in managing their assets.
It should be pointed out that the advancement of settlement beginning time is totally consistent with the settlement procedures of overseas exchanges that have put into practice the early processing of settlements on the settlement day.