KSD Strengthens 'Foreign Securities Information Management System'... Enhancing Investment Efficiency, Stability, and Protection

[Asia Economy Reporter Oh Ju-yeon] The Korea Securities Depository announced on the 16th that it will officially launch the foreign currency securities information management project, including pushing forward with a contract with securities information provider Refinitiv Korea to establish a 'Foreign Currency Securities Information Management System' within the year.

This project focuses on securing additional collection channels for issuance and rights information of foreign currency securities beyond the six foreign custodians and efficiently managing risks.

Through the foreign currency securities information management system, the plan is to receive issuance and rights information of foreign currency securities managed items from securities information providers, thereby enhancing the efficiency of information collection and management and building foreign currency securities information data.

The Depository stated that through future system advancement, it plans to add procedures that automatically compare information provided by foreign custodians, securities companies, and securities information providers to prevent processing errors and manage risks such as settlement delays and failures.

Currently, foreign currency securities information necessary for settlement, custody, and rights exercise related to foreign currency securities investment relies structurally on information provided by foreign custodians or securities companies.

Furthermore, the scale of foreign currency securities investment has recently grown rapidly, centered on the US market, with increasing new item investments and more complex and diverse types of rights, raising the need for systematic foreign currency securities information management. The custody scale of US stocks was approximately $25.2 billion as of the end of September 2020, a 200% increase compared to $8.42 billion at the end of 2019.

A representative from the Depository said, "Through this systematization of foreign currency securities information management, we expect to provide more accurate and prompt information to securities companies, enhancing the stability and efficiency of domestic investors' foreign currency securities investments, and proactively contribute to investor rights protection by preventing customer damages such as rights exercise or payment omissions and settlement failures caused by information errors."

This content was produced with the assistance of AI translation services.