Securities Firms Ease Collateral Rules, Postpone Reverse Transactions

The Chosun Ilbo · Song Bok-gyu(ChosunBiz) ·

Securities Firms Ease Collateral Rules, Postpone Reverse Transactions Measures Follow Government Exemption from 140% Collateral Ratio for Three Months to Stabilize Markets

Major domestic securities firms have recently taken measures to adjust credit loan collateral ratios or postpone reverse transactions in response to a sharp stock market decline. These steps follow the government’s decision to exempt securities firms from the obligation to maintain a 140% credit loan collateral ratio for three months.

According to the financial investment industry on the 6th, Mirae Asset Securities will lower the credit loan collateral ratio for domestic stocks from the existing 140% to 130% starting on the 9th. For overseas stocks, the ratio remains at 140%, but if a customer has both domestic stock credit loans and overseas stock collateral loans, the collateral ratio will be calculated between 130% and 140%. The application period runs until January 31 next year.

Korea Investment & Securities has decided to temporarily postpone reverse transactions for customers who apply. The firm will implement this deferral system for three months, targeting customers subject to reverse transactions the following day or on the same day. For collateral ratios of 120–130%, a one-time deferral is allowed, while those with ratios of 130–140% can apply for deferrals daily.

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