To protect customers' interests, FTA prescribes that a Member must deposit Customer margins with the Korea Securities Finance Corporation (KSFCO) and Exchange margins with one of the 4 banks designated by KRX as a segregated client account in order to protect customers. In the meanwhile, in case of securities deposited by customers, a Member must deposit customers' securities with the Korea Securities Depository (KSD) as a segregated client account.
A Member opens and maintains two accounts at the KSD and any one of the 4 banks and one account at the KSFCO. One is for the margin deposits of customers' transactions and the other is for the margin deposits of member's transactions. Since the Customer margin (between Member and customer) is generally much bigger than the Exchange margin (between KRX and Member), the difference between Customer margin and Exchange margin will be held in a segregated client account at KSFCO to protect customers.