KRX: EU Commission Adopts Equivalence Decisions For CCP Of Korea

With the enhanced international credibility, the concerns of foreign investors over the participations in the Korean market will be resolved. <Outline> The European Commission (EC) has announced on November 13 that it determined that five countries* including Korea have the equivalent regulatory regimes for central counterparties (CCP) as the European Union * Korea, Canada, Switzerland, Mexico and South Africa As a result, the recognition of the ESMA (European Securities and Markets Authority) as a qualified CCP* for the Korean CCP (Korea Exchange: KRX) is on track and the legal risks** for the clearing participation of European financial companies in the Korean market are expected to be removed. * The EC’s equivalence decision is a precondition for the recognition as a qualified CCP by ESMA ** According to the European Market Infrastructure Regulation (EMIR), a CCP in a 3rd country may provide clearing services to its clearing members established in the EU only where that CCP is recognized by ESMA.
File	20151118 EC announced equivalence decision for the regulatory system of KRX CCP