International Monetary FundWorld Bank2014-11-192014-11-192014-09https://hdl.handle.net/10986/20582This report contains the assessments of the Bank of Korea (BOK)-wire+ and Korea exchange (KRX) central counterparty (CCP) based on the committee on payment and settlement systems (CPSS) - International Organization of Securities Commissions (IOSCO) principles for financial market infrastructures (PFMI). The assessment was undertaken in the context of the international monetary fund's (IMF's) financial sector assessment program (FSAP) to the Republic of Korea in April and July 2013. The objective of the assessment has been to identify potential risks related to the FMIs that may affect financial stability. The scope of the assessment includes two main FMIs as well as the authorities in Korea responsible for regulation, supervision, and oversight of FMIs. The BOK-wire+ and the KRX CCP are assessed against all relevant principles of the PFMI. The authorities, being the BOK, the financial services committee (FSC), and the financial supervisory service (FSS), are assessed using the responsibilities for authorities of FMIs. This report provides introduction; methodology and information used for the assessment; overview of the payment, clearing, and settlement landscape; and key findings follow up for the BOK-wire+; key findings and follow-up for the KRX-CCP; key findings and follow up for authorities; recommendations for the BOK-wire+; recommendations for the KRX-CCP; and recommendations for authorities.en-USCC BY 3.0 IGOACCOUNTINGAUCTIONAUDIT COMMITTEEAUDITSBANKING INSTITUTIONSBANKRUPTCYBENCHMARK STOCKBENEFICIARYBILATERAL NETTINGBONDBOND TRADINGBROKERBROKERSBUSINESS REGULATIONSBUSINESS RISKSCAPITAL MARKETCAPITAL MARKETSCAPITAL RATIOCASH MARKETCASH PAYMENTSCASH SETTLEMENTCENTRAL BANKCENTRAL BANKSCENTRAL SECURITIES DEPOSITORIESCENTRAL SECURITIES DEPOSITORYCOLLATERALCOLLATERAL RISKCOMMERCIAL BANKCOMMERCIAL BANKSCOMMODITIESCOMMODITIES FUTURESCOMMODITYCOMPENSATION FUNDCOMPENSATION FUNDSCORPORATE BONDSCORPORATE DEBENTURESCORPORATE SECURITIESCREDIT EXPOSURESCREDIT LINECREDIT LINESCREDIT LOSSCREDIT LOSSESCREDIT POLICIESCREDIT RATINGCREDIT RISKCREDIT RISK MANAGEMENTCREDIT RISKSCREDITWORTHINESSCURRENCYCUSTODIAN BANKSCUSTODYDEBENTURESDEBTDEBTORDEPOSITDEPOSIT ACCOUNTDEPOSIT INSURANCEDERIVATIVESDERIVATIVES MARKETDERIVATIVES MARKETSDIRECT ACCESSDISCLOSURE OF INFORMATIONDOMESTIC FINANCIAL MARKETSECONOMIC DEVELOPMENTELECTRONIC FUNDSELIGIBLE COLLATERALENFORCEABILITYEXPOSUREEXPOSURESFINANCE CORPORATIONFINANCIAL CRISISFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL MARKETFINANCIAL SECTORFINANCIAL SERVICESFINANCIAL SHOCKSFINANCIAL STABILITYFINANCIAL SYSTEMFINANCIAL TRANSACTIONSFOREIGN BANKSFOREIGN COMPANIESFOREIGN CURRENCIESFOREIGN EXCHANGEFOREIGN EXCHANGE TRANSACTIONSFOREIGN SHARESFRAMEWORK FOR COLLATERALFUTURESGOVERNMENT BONDGOVERNMENT BOND FUTURESGOVERNMENT BOND MARKETGOVERNMENT BONDSGOVERNMENT POLICIESGOVERNMENT SECURITIESHOLDINGHOUSING BONDSHUMAN RESOURCESINFORMATION TECHNOLOGYINSOLVENCY PROCEEDINGSINSURANCE COMPANIESINSURANCE CORPORATIONINTEREST RATEINTEREST RATE FUTURESINTEREST RATE SWAPSINTERNAL AUDITINTERNATIONAL BONDSINTERNATIONAL FINANCIAL MARKETSINTERNATIONAL STANDARDSINVESTMENT FUNDSINVESTMENT POLICYINVESTMENT STRATEGYISSUANCEISSUANCESJURISDICTIONLEGAL FRAMEWORKLEGAL IMPEDIMENTSLEVEL OF CONFIDENCELIQUIDATIONLIQUIDITYLIQUIDITY FACILITIESLIQUIDITY FACILITYLIQUIDITY RISKLIQUIDITY RISKSLOANLOCAL GOVERNMENTMARK TO MARKETMARKET CAPITALIZATIONMARKET CONDITIONSMARKET EFFICIENCYMARKET FOR BONDMARKET FOR BONDSMARKET INFRASTRUCTUREMARKET INFRASTRUCTURESMARKET OVERSIGHTMARKET PARTICIPANTSMARKET REGULATIONMARKET REGULATIONSMARKET RISKSMARKET STOCKMATURITIESMONETARY FUNDMONETARY POLICYMONETARY STABILITYMONEY SETTLEMENTSNET DEBTOPERATIONAL RISKOPTION CONTRACTSOPTIONS FUTURESOWNERSHIP STRUCTUREPAYMENT FLOWSPAYMENT ORDERSPAYMENT SYSTEMPAYMENT SYSTEMSPAYMENTS SYSTEMSPRICE CHANGESPRIVATE SECTOR DEVELOPMENTREAL TIME GROSS SETTLEMENTREGULATORSREGULATORY FRAMEWORKREGULATORY STRUCTUREREPOREPO TRANSACTIONSREPOSRESERVESRISK CONTROLRISK FACTORSRISK MANAGEMENTRISK MANAGEMENT POLICIESRISK MANAGEMENT SYSTEMRISK MANAGEMENT SYSTEMSSECURITIESSECURITIES DEALERSSECURITIES MARKETSECURITIES TRANSACTIONSSETTLEMENTSETTLEMENT INFRASTRUCTURESETTLEMENT INFRASTRUCTURESSETTLEMENT OBLIGATIONSSETTLEMENT OF FUNDSSETTLEMENT OF TRANSACTIONSSETTLEMENT PROCEDURESSETTLEMENT RISKSETTLEMENT SERVICESETTLEMENT SERVICESSETTLEMENT SYSTEMSETTLEMENT SYSTEMSSHARE TRADINGSHAREHOLDERSSHORT-TERM BONDSSTATUTORY LAWSTOCK INDEXSTOCK INDEX FUTURESTOCK INDEX FUTURESSTOCK MARKETSTOCK MARKETSSTOCK PRICESTOCKSSUPERVISORY AUTHORITIESSYSTEMIC RISKTAXTELECOMMUNICATIONSTRADINGTRADING ACTIVITIESTRADING FLOORTRADING VOLUMETRANSACTIONTRANSPARENCYTREASURYTREASURY BONDSTREASURY STOCKTYPES OF INSTRUMENTSUNDERLYING ASSETSVALUE OF ASSETSVALUE PAYMENT SYSTEMVALUE TRANSFERSVOLATILITYWAREHOUSE10.1596/20582