Leveled Up
The Korea Exchange (KRX) said on Nov. 17 that the European Commission (EC) recently announced the financial market infrastructure regulations of the five countries including Korea are at a level equivalent to those in effect in Europe.
The announcement signifies that the Korean financial market can benefit from the qualifying CCP certification of the European financial authorities with European financial companies’ risks regarding business in the Korean market properly addressed. The examination of the equivalence is a prerequisite for the certification, and European financial institutions cannot participate in clearings via a non-qualified CCP in a third country, according to the European Market Infrastructure Regulation.
The recent determination can be attributed to the continuous efforts on the part of the Korean government agencies, including the KRX and the Financial Services Commission (FSC). They came up with guidelines to be applied to infrastructure organizations while revising the Capital Markets Act so that Korea’s financial risk management systems conform to their international counterparts.