NH Investment & Securities, 1-Day Grace Period for Forced Sales... "To Expand Market Response Opportunities"

Temporary Implementation of Online or Wired Application for Forced Sale Grace Period Until September 30

[Asia Economy Reporter Hwang Yoon-joo] All major securities firms, including NH Investment & Securities, are joining the easing measures for forced liquidation of margin loans. They will temporarily defer forced liquidation by one day until September, and some securities firms have lowered the collateral maintenance ratio.

NH Investment & Securities announced on the 11th that it will defer forced liquidation of margin loans by one day in accordance with the Financial Services Commission's securities market measures.

An NH Investment & Securities researcher explained, "For customers with a collateral maintenance ratio of 130% or higher, forced liquidation will be deferred by one day only for those who apply. Customers who do not apply for the deferral or have a collateral ratio below 130% will undergo forced liquidation as usual (T+2 days)."

Applications for forced liquidation deferral must be made via mobile or phone. If applied before market close (3:30 PM), the deferral will be applied immediately from the calculation of collateral deficiency on the same day. However, if applied after market close, it will be applied from the next day's collateral deficiency calculation. However, forced liquidation for overdue repayments, cash shortages, and affiliated loans are not subject to this measure.

Samsung Securities also announced that it will temporarily lower the collateral maintenance ratio requirement for margin loans and defer forced liquidation by one day. Samsung Securities' previous collateral maintenance ratio was 140% or higher, but the standard has been lowered to 130% or higher.

This forced liquidation deferral measure will be in effect until September 30. A securities firm official stated, "The forced liquidation deferral measure is temporarily implemented to protect investors' assets and expand market response opportunities," adding, "The Financial Supervisory Service recommended the securities industry to implement this measure until September as a non-objection action."

Previously, Mirae Asset Securities, Korea Investment & Securities, Shinhan Financial Investment, Meritz Securities, and Kiwoom Securities also participated in lowering the collateral ratio and other easing measures for forced liquidation.

The reason for the relatively late participation of major securities firms is due to system work. Separate system settings are required for forced liquidation deferral. Some small and medium-sized securities firms reportedly participated in the easing measures more quickly by manually processing the forced liquidation deferral.

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