Market Link Guide – South Korea – KGBs and MSBs
Key features
CSD link as defined under CSDRa | Yes |
Type of link | Direct link with the Korea Securities Depository (KSD) |
a. CSD Regulation (EU) No 909/2014, Article 2(29).
CSD | |
| Name | Korea Securities Depository (KSD) |
FATCA GIIN | 7HKXGK.99999.SL.410 |
| LEI | 9884008RRMX1X5HV6625 |
Country of incorporation | South Korea |
Account type | Omnibus account |
Legal Account name/holder | Clearstream Banking S.A. |
Operational arrangements
Yes/No | Remarks | |
Settlement free of payment | Yes | Settlement free of payment in the domestic market is limited to NCBO portfolio transfers only. |
Settlement against payment | Yes | Eligible settlement currency: KRW (Korean Won). |
Settlement against payment in central bank money account of CBL/CBL clients | No | CBL holds a cash account at the cash correspondent and settlement bank. Against payment settlement in KRW takes place on the cash account of the cash correspondent and settlement bank at the Bank of Korea. |
Bridge settlement | No | |
Shaping facility | No | |
Partial settlement | No | |
Settlement penalty fees | No | |
Pre-matching | No | |
Back-to-back processing | No | |
Allegements | Yes | |
Automatic compensation | No | |
Registered securities | No | |
Multi-Market Securities | No | |
Lending and borrowing | No | |
Proxy voting | No | |
Investment Funds | No | |
Liquidity Hub Connect | No | |
Sale and purchase of rights | No | |
Repo services | Yes | CBL internal settlement. |
Market restrictions | Yes | Refer to Investment Regulation. |
FTT | No | |
Daily reconciliation | Yes |
Moment of entry of instructions | When the KSD is notified of the trade confirmation after the completion of the bond transaction. |
Irrevocability of instructions | Settlement instructions can be cancelled before they match. Once matched, the settlement instructions cannot be cancelled. |
Finality of instructions | Securities settlements are final when transferred in the KSD’s system. |
Legal arrangements
The below section is based on the legal opinions obtained by CBL that was issued on 8 December 2023. The information is provided for guidance only and should not be considered in isolation or as constituting a complete or definitive legal advice on any specific matter.
No insolvency proceedings against the CSD | Confirmed |
Liability for negligence | Confirmed |
Book-entry regime with in rem rights | Confirmed |
Recognition of nominee concept | Confirmed |
No right of retention for the CSD | Confirmed |
Segregation of assets at the CSD | Confirmed |
No right of use | Confirmed |
No upper-tier attachments | Confirmed |
Insolvency of the CSD with no impact on CBL's rights | Confirmed for securities. Cash held by the KSD will give rise to an unsecured claim against the estate of KSD in case of insolvency. |
Shortfall pro-rated among holders | Confirmed |
Settlement finality in case of insolvency | Confirmed |
Record keeping of at least 10 years | The KSD has committed to record keeping period of up to 5 years in accordance with the provisions of related laws, such as the Electronic Financial Transaction Act. |