Exchange Derivatives

Clearing Member Procedures for Obtaining Clearing and Settlement Guarantee Services for Securities Derivative Contract Transactions

To obtain Clearing services and guarantee the settlement of Securities Derivative Contract transactions, Clearing Members must first fulfill the following procedures:

  1. Submit an application letter using the Company's letterhead and signed by the party authorized to represent the Company in accordance with the Articles of Association of the prospective Securities Derivatives Contract Clearing Member company accompanied by documents.
  2. Based on the submission of the application letter along with the attached documents after being declared complete and appropriate, then within a period of no later than 10 (ten) Exchange Days, IDClear will carry out: review of documents and inspection of the readiness of operational infrastructure equipment;
  3. Based on the results of the document review and inspection, within a period of no later than 5 (five) Exchange Days after the document review and inspection activities are completed, IDClear will submit a Letter of Approval or Letter of Rejection in Principle to prospective Securities Derivative Contract Clearing Members.
  4. Prospective Derivative Contract Clearing Members who do not meet the requirements to obtain approval in principle can resubmit their application no later than 15 (fifteen) calendar days after the date of the letter of rejection for approval in principle.
  5. In the event that IDClear has submitted a Letter of Approval in Principle, prospective Securities Derivative Contract Clearing Members are required to sign an Agreement for the Provision of Clearing Services and Guarantee Settlement of Securities Derivative Contract Transactions.
  6. KPEI will open a Main Securities Account for Settlement of KPEI Securities Derivative Contracts, a Main Securities Account for Collateral for KPEIIDClear Securities Derivative Contracts, a Security Fund Account for IDClear Securities Derivative Contracts at KSEI for Clearing Members who have obtained a Letter of Approval in Principle and have signed an Agreement for Providing Clearing Services and Guarantee Settlement for Securities Derivative Contract Transactions and have a Main Securities Account 001.
  7. In the event that IDClear has informed prospective Securities Derivative Contract Clearing Members regarding the opening of accounts, then the prospective Clearing Member is obliged to deposit Security Funds into the IDClear Securities Derivative Contract Security Fund Account and submit supporting evidence to IDClear within a period of no later than 6 (six) Exchange Days from the opening of the account in question.
  8. In the event that a prospective Securities Derivatives Contract Clearing Member has fulfilled the requirements, IDClear will issue a Letter of Approval for Securities Derivatives Contract Clearing Members no later than 3 (three) Exchange Days after the deadline for fulfilling the requirements.
  9. In the event that a prospective Securities Derivatives Contract Clearing Member cannot fulfill the requirements, IDClear will issue a letter rejecting the approval of the Securities Derivatives Contracts Clearing Member accompanied by the reasons no later than 3 (three) Exchange Days after the deadline for fulfilling the requirements.
  10. For prospective Securities Derivative Contract Clearing Members who do not meet the requirements for obtaining Clearing services and guaranteed settlement of Securities Derivative Contract transactions, they can resubmit their application no later than 30 (thirty) calendar days after the date of the letter rejecting approval from the Securities Derivative Contract Clearing Member.