Risk Management

  • Credit Facility is a loan facility provided by Payments Bank to KPEI in order to control the failure of settlement of Stock Exchange Transactions.

  • Default to Deliver is a condition when a clearing member cannot fulfill some or all of the obligations to deliver certain securities as a result from stock exchange transaction in the context of settlement of Stock Exchange Transactions.

  • Default payment is a condition when a clearing member cannot fulfill some or all of the obligations to make a payment of money in the context of settlement of Stock Exchange Transactions.

  • Guarantee is assurance of compliance with the settelement of Exchange Transaction.

  • The guarantee fund is a fund which shall be deposited by each Clearing Members with the following provisions:

    • Deposit Guarantee Fund amounted to 0.01% (zero point zero one percent) of the value of each Exchange Transaction.
    • The guarantee fund shall be deposited by clearing members to the KPEI account on the day of Exchange Transaction completion.
    • Guarantee Fund are recorded separately by KPEI.
    • Guarantee Fund administered by KPEI to ensure fulfillment of obligations of the Clearing Member after the collateral received on securities and rights or money, and other collateral and the Clearing Member Guarantee Reserve, is insufficient to meet obligations of KPEI’s Clearing Member.
  • Guarantee Reserve is the accumulation of funds derived from the provision of KPEI operational surplus in cash or equivalent that are used to finance the Exchange Transaction Settlement Guarantee.