| ① Authorization requirements |
Should be authorized in OTC derivatives investment trading business |
| ② Financial requirement |
Equity capital requirements
General Clearing Member, Proprietary Clearing Member
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General Clearing Member |
Proprietary Clearing Member |
| a) Equity Capital Amount |
KRW 500 bil. or more |
KRW 50 bil. or more, Or less than KRW 50 bil. in case of an exception |
| b) Equity Capital Ratio Ⅰ |
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For 2014 |
From 2015 |
From 2018 |
| Commercial Banks |
Equity capital ratio ≥ 8% |
Common capital ratio ≥ 4.5% & core capital ratio ≥ 6% & total capital ratio ≥ 8% |
Common capital ratio ≥ 4.5% & core capital ratio ≥ 6% & total capital ratio ≥ 8% |
| Financial investment business other than a commercial bank |
Net operating capital ≥ total risk × 2 & NCR ≥ 150% |
Net operating capital ≥ total risk ×2 & NCR ≥ 100% |
Net operating capital ≥ total risk ×2 & NCR ≥ 150% |
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| c) Equity Capital Ratio Ⅱ |
Equity capital ≥ 40% of clearing margin |
Calculation of equity capital
- (Commercial banks) Equity capital pursuant to Paragraph 1, Article 2 of the Commercial Banks Supervision Regulation
- (Financial investment companies other than commercial banks) Total amount of capital in individual financial statements (total assets – total liabilities)
Qualifications for exceptions to ‘Equity capital amount’ (either ‘a)’ or ‘b)’)
- a) Providing a guarantee statement on obligation fulfillment by the parent company or the largest shareholder,
- b) providing a confirmation letter on obligation fulfillment by the foreign bank head office in case of a foreign bank’s domestic branch
주의The parent company, head office of the foreign bank, etc. should have equity capital of KRW 50 bil. or more.
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| ③ Facilities requirement |
Infrastructure for stable and smooth operation of clearing and settlement business
- Computer system (e.g., member OTC derivatives clearing system)
- Administrative organization (e.g., application of obligation assumption, settlement handling, computer systems management, risk management, internal control, compliance and auditing)
- Necessary work space(e.g. office)
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| ④ Human resources requirement |
Human resources with expertise and integrity for adequate implementation of clearing and settlement business
- Personnel completed training/education program on derivatives by a training institution, home and abroad
- Personnel with practical experiences on derivatives transactions
- Personnel who have expertise comparable to the above
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| ⑤ Social credibility requirement |
Sufficient social credibility
- No fact of being suspended investment trading business for OTC derivatives
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