stp in korean securities market vision 2015 we bridge asia and the rest of the world as global...

STP In Korean Securities MarketVISION 2015We bridge Asia and the rest of the world as Global Partner with internationally compatible investment services2008. 6. 2.Korea Securities Depository

Table of Contents. Overview. STP in Front Office. InSet System. Statistics . Future Plan

. Overview-KSDKSD is the only CSD providing custody, clearing and settlement services in Korean Market

Settlement services includeExchange and Non-exchange transactionsStock, Bond (Corporate, Government), Money Market Instrument (CD, CP), Trust Unit, Mutual Fund, etc.

-1-Settlement Volume (KRW trillion)2,168(05) 2,233(06) 2,430(07)

. Overview-Korean Market-2-TradeOrders (Tel, E-mail ) MatchingSettlementTrust bankSettlementBankSettlementBankTrade report(Tel, Fax, E-mail ) Allocation(Fax, E-mail ) Affirmation(Fax, E-mail ) Non-exchangeExchangeFrontofficeBackoffice

. STP In Front Office-3-Samsung Investments introduced FIX System in 2003

43 Brokers, 11 Investment Managers

. InSet-History-4-KSD introduced InSet System (Institutional Settlement System) in 1990

. InSet-Characteristics-5-Linkage between matching system and book-entry systemStock (ETF, ELW), Bond (CD, CP)Delivery Versus PaymentDVP1(Bond), DVP3(Stock)Central Bank MoneyNetworkCCF / WebMessage format / CodeProprietary Message format / ISIN(ISO6166)

. InSet Stock (Institutional Investor)-6-TradeOrders (Tel, E-mail ) 3. Matching 4. NettingMatchingSettlement 6. Blocking

9. Securities transfer7.Money transfer instruction (CCF)8.Money transfer result (CCF)10.Settlement result (Web)10.Settlement result (Web)7.Money transfer instruction 7.Money transfer instruction

. InSet Stock (Fund)-7-TradeOrders (FIX, Tel ) 3. Matching(1.2) 7. NettingMatchingSettlement 9. Blocking

12. Securities transfer10.Money transfer instruction (CCF)11.Money transfer result (CCF)13.Settlement result (Web)13.Settlement result (Web)10.Money transfer instruction 10.Money transfer instruction Trust bank6. Matching(1.5)FundNet

. InSet Stock (Non-resident)-8-TradeOrders (FIX, Tel ) NOE 4. NettingMatchingSettlement 6. Blocking9. Securities transfer7.Money transfer instruction (CCF)8.Money transfer result (CCF)10.Settlement result (CCF)10.Settlement result (CCF)7.Money transfer instruction 7.Money transfer instruction Local custodian3. Matching

AllocationTrade reportNOE Trade report

. InSet Bond (Institutional Investor)-9-TradeTrade (Tel, E-mail ) 2. MatchingMatchingSettlement 4. Blocking 7. Securities transfer5.Money transfer instruction (CCF)6.Money transfer result (CCF)8.Settlement result (Web)8.Settlement result (Web)4.Money transfer instruction 4.Money transfer instruction

. InSet Bond (Fund)-10-TradeTrade (Tel, E-mail ) 3. Matching(1.2) MatchingSettlement 8. Blocking 11. Securities transfer9.Money transfer instruction (CCF)10.Money transfer result (CCF)12.Settlement result (Web)12.Settlement result (Web)9.Money transfer instruction 9.Money transfer instruction Trust bank6. Matching(1.5)FundNet

. Statistics-Stock-11-Total 207 participants (2007)

. Statistics-Stock-12-Trading volume by InSet vs Settlement volume by InSet Trillion won(48%)(79%)(82%)(82%)(82%)

. Statistics-Bond-13-Total 238 participants (2007)

. Statistics-Bond-14-Trading volume by InSet vs settlement volume by InSet Trillion won(49%)(73%)(74%)(74%)(76%)

. Future planNext generation IT System project will be completed in May 2010

The project plans to introduces in InSet SystemCCF in all settlement processesISO 15022

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