Wednesday May 25 2016
News Source: Global Disclosures
Focus: Foreign Investment
Type: General
Country: Korean Republic
The Financial Services Commission, Korea, (FSC) launched a test operation of a new “omnibus account” on 25 May 2016, with participants initially being invited from four standing proxies, two securities firms and one global financial investment company.
The objective of the test run, prior to the full operation of the omnibus account system in 2017, is to:
- engage foreign investors with the account to enable detailed procedures to be devised; and
- to identify technical errors in electronic and settlement systems
The test operation will proceed in two stages:
- Stage 1 Mock Trading (25 May – Sept 2016): Participants will process procedures of order, settlement and ex-post reporting through a mock trading system to check detailed operation process and stability of electronic systems.
- Stage 2 Real Trading (Sept. 2016 – official operation in 2017): A limited number of participants, including global investors who participated in mock trading, will conduct real trading through an “omnibus account”. The FSC / FSS will gather their suggestions during this process and amend the system prior to full operation in 2017.
The FSC will consider suggestions gathered from global investors during the test operations to create detailed procedures and to help more global investors to participate in each stage of the test run.
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