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?	Never.
	Extend the time of opening for settlement input by users?	Never.
	Delay start of day processing?	Never.
2.	Does the depository operate real time or multiple batch processing for settlement?	1. Organised market - KDD operates a rolling T+2 settlement system (on a trade for trade principle) for all stock exchange trades. (BIS, Model 2 system) 2. Off market - KDD operates FOP system and securities transactions occur as posted transactions are approved by the KDD - usually same day (real time settlement) 3. DVP-OTC market - KDD operates a DVP system where securities transactions occur conditionally upon delivery of funds (and vice versa) - please see also Recommendation 5/6 (real time settlement)
3.	Does the depository allow interactive communication (on line real time) with its users, enabling settlement input and amendment?	All participants are linked electronically to KDD. The ability to install an electronic link is a precondition to becoming a participant in KDD and allows real-time settlement input and amendment.
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?	Never.