Customers, with the exception of qualified institutional investors, must deposit the customer margin with the member firms before placing an order. A member firm cannot submit the customers' order unless the required margins are deposited. However, no margin deposit is necessary prior to trading for transactions between member firms and the KRX. In accordance with the rules and regulations of the KRX, member firms may deposit the member margins by noon of T+1 day.
The regulations of the KRX are designed to protect customers from cases of insolvency or financial instability among member firms. A customer‘s deposit for futures trading must be maintained on a separate account apart from the properties of member firms. To protect customers, the Futures Trading Act requires that member firms deposit customer margins with the Korea Securities Finance Corporation (KSFC) and customers' securities (substitute securities) with the Korea Securities Depository (KSD).
The KRX monitors the balance of margins of all members daily and checks their financial requirements. It also requires all members to submit financial statements quarterly.
In addition to the Joint Compensation Fund, the KRX maintains a credit line of up to KRW 100 billion from a bank for any emergencies that may occur on the KRX market.
※ Data and information on the KRX website are provided for the purpose of improving availability of information for investment, not for trading securities. In spite of the efforts made in ensuring the accuracy of data and information, the KRX recognizes that unintentional and chance errors and delays occur. The KRX is not responsible for any loss resulted from the investments made using the data and information provided on its website.