Margin Management in the Derivatives Market
The margin system for the securities market (introduced on Feb. 25, 2017) calculates the margin for each member and account for self-trading/brokerage on listed securities (listed stocks and securities products subject to T + 2 payments). Margin rates are determined according to the type of securities and reviewed quarterly for eligibility. They may be changed on the first Monday of the following month when it is deemed necessary.
The KRX measures price volatility every business day for timely adjustment of margin rates. The KRX also periodically reviews the adequacy of the margin ratios and changes them whenever deemed necessary.
Margin Management in the Derivatives Market
Classification Details
Ongoing Review For margin ratio adjustment in time, KRX measures and reviews price volatility every business day.
Periodic Review KRX reviews the adequacy of the margin rates on a regular basis.(Bimontly from March, 2018. Monthly from 2019)
Timely Review Whenever there is a sudden market change, KRX reviews the margin rates changes if needed.
Management Clearing Margins for Interest Rate Swap(IRS)
The clearing member margin is managed by each clearing member and separated from the assets of the KRX. The customer’s assets are also separately managed from members’ assets. Also, margin rates are calculated every day and the rates concerned are applied by each quarter to reflect the market situation in time.
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  • Listed Risk Management 051-662-2756