Recommendation 1 Recommendation 2 Recommendation 3 Recommendation 4

Recommendation 5 Recommendation 6 Recommendation 7 Recommendation 8

Market selection

Recommendation 2

Securities Systems must allow the option of network access on an interactive basis. They should cope with peak capacity without any service degradation, and have sufficient standby capabilities to recover operations in a reasonably short period within each processing day.

1.	How often, over the last twelve months, has the depository been required to:
	Change its published settlement timetable?	Once, on 15th Sept.2000, it caused by force majeur , an explosion in Stock Exchange Building, KSEI and Clearing Corp. (KPEI) issued an announcement to extend the settlement timetable for SE and OTC transactions.
	Extend the time of opening for settlement input by users?	Twice, 2 days when the explosion in JSX Building, see the above mentioned.
	Delay start of day processing?	Never.
2.	Does the depository operate real time or multiple batch processing for settlement?	Settlement between brokers and custodian banks (locally known as OTC) is on real time basis, with cash and securities exchange simultaneously. On the other hand, settlement of stock exchange transactions is done in two batches – morning (08.00 am) and afternoon ( 12.30 pm).
3.	Does the depository allow interactive communication (on line real time) with its users, enabling settlement input and amendment?	Yes, our C-BEST (Central Securities Depository Book Entry Settlement System) provides the following functionality through the participant workstation: Single instruction entry screen (securities) Batch handling instructions for bulk processing – (securities) Modification of not submitted single instructions or batch instructions Management or instructions life cycles The following functions are restricted to designated members of the participants: View instructions Release instructions (validate and send them to the KSEI and KPEI system) Cancel (% replace) instructions if their status allows it.
4.	Has the depository ever failed to recover an outage within the day or failed to start processing runs for a whole day; and, if so, when did that failure arise and what steps have been taken to prevent a similar event in the future?	Refer to the explanation of the question no. 1 & 2. KSEI system was indeed not interrupted by the explosion at the Stock Exchange building, however due to the agreement with JSX, SSX and Clearing Corp. (KPEI), settlement process was put on hold until JSX and KPEI resume their system operations and connections.