KRX To Double The Amount Of Joint Compensation Fund

The Korea Exchange will double the amount of Joint Compensation Fund as trading and settlement amount at its cash and derivatives market revealed to have increased more than double in last five years.

Currently, total amount of the fund is KRW 200 billion. Half of the total amount is for the two cash markets and the rest is for the Derivatives Market. However, starting from January 2010, the amount of fund for each market will be increased gradually by quarter to minimize members’ burden. The total amount of fund will be KRW 400 billion by the end of July 2011, which is exactly double of the current amount.

Also, members will be allowed to contribute up to 50% of the allotted amount to the fund in government bonds or Monetary Stabilization Bonds. Currently, members are only allowed to contribute fully in cash.