KRX To Advance Delivery and Payment for Settlement Securities
To enhance the settlement efficiency and member convenience, the Korea Exchange (“KRX”) and the Korea Securities Depositary would begin the settlement in KOSPI Market and KOSDAQ Market from 09:00 on the settlement date (T+2) and this will be put into effect on July 25, 2011.
With the implementation of this amended procedures, the delivery of settlement securities and transfer of settlement payments begin at 09:00 on the settlement day.
Since the delivery of and payment for settlement securities was advanced by one hour, i.e., from 16:00 hour to 15:00 hour, on July 5, 2010, 82.2% of settlement securities and 46.7% of settlement payments were processed before 16:00 hour, indicating the improvement of settlement efficiency.
As a result of transferring and receiving the settlement securities and payments early, the delay in settlement has greatly been reduced and this in turn has eliminated the settlement uncertainty caused by processing of settlement around the settlement deadline.
Furthermore, by allowing the receipt of the securities and payments early in the day, it helps the member companies and investors to improve the efficiency in managing their assets.
It should be pointed out that the advancement of settlement beginning time is consistent with the settlement procedures of overseas exchanges.