Participants that are eligible to submit orders, transact, and facilitate clearing and settlement guarantee for stock options are Clearing Member (CM) that meets IDX and KPEI requirements. To become CM, prospective participants are required to sign the membership agreement and registration applications that are available on KPEI website.
The type of accounts to be opened by CM and its clients for the Stock Options settlement are the same as for futures contract transactions. This means, the accounts can be used for two derivative transactions; for Futures and Stock Options. Accounts opened by CM include Futures and Options Guarantee Fund Account, Futures and Options Collateral Account, Futures and Options Settlement Account, and Futures and Options Operational Account. CM clients are required to open Futures and Options Collateral Sub Account. Power of attorney must be given to KPEI to manage those accounts.
Securities Account Structure Illustration