South Korea: Partial settlement on listed securities
Folllowing Announcement A21064, Clearstream Banking1 informs clients that effective
immediately
the Korea Securities Depository (KSD) has lowered the settlement amount, that automatically initiates partial settlement, from KRW 10 billion to KRW 5 billion.
Impact on clients
For eligible listed securities (excluding fixed income), clients are advised that against payment transactions with domestic counterparties can only be in amounts of up to KRW 5 billion to prevent potential compulsory partial settlement in the market.
Instructions that exceed the limit of KRW 5 billion shall be rejected by Clearstream Banking. Impacted clients shall be informed of such rejections and expected to re-instruct in smaller amounts with immediate release to avoid failed settlement.
Note: Clearstream Banking shall not be responsible for any loss, claim, liability and/or expense in relation to partial settlement in the market. Clients who do not adhere to the above requirement to prevent potential compulsory partial settlement in the market shall undertake to hold Clearstream Banking harmless and indemnify Clearstream Banking from any such loss, claim, liability and/or expense in relation to partial settlement in the market.
Further information
Settlement services – South Korea – Equities and corporate bonds will be updated accordingly.
For further information, clients may contact Clearstream Banking Client Services or their Relationship Officer.
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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG clients using Creation accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.