KDPW Main Responsibilities

• The clearing and settlement of transactions executed in the public securities markets. Following the execution of a transaction, KDPW carries out domestic and international transfers of financial instruments between the depository accounts of participants and performs cash transfers between participants’ accounts in the Central Bank.
• The registration and safekeeping of dematerialised financial instruments. KDPW manages depository accounts for participants of the depository-settlement system on which securities are registered.
• The processing of corporate actions and securities entitlements. KDPW acts as intermediary between issuers of securities and their owners for dividend payments and interest payments, and performs the following corporate actions on behalf of domestic and foreign issuers: assimilations, exchanges, conversions and share splits, subscription rights issues, and the conversion of convertible bonds into shares.
• Supervision of the securities that make up the issue that are eligible for trading. KDPW monitors the number of securities registered on all participant accounts to ensure it corresponds with the number of securities issued by the issuer.
• The management of the Settlement Guarantee Fund, which is made up of contributions paid in by KDPW participants. Its purpose is to ensure the performance of settlement obligations in the event of a shortage of assets necessary to settle transactions from the stock exchange, and the BondSpot and NewConnect markets.
• The management of the mandatory Investor Compensation Scheme. KDPW manages the Investor Compensation Scheme, created for the purpose of guaranteeing cash and securities registered in investment accounts in the event of the bankruptcy of brokerage houses and custodian banks managing securities accounts.
• Duties relating to the social security system. KDPW is responsible for the administration of transfer payments between open-ended pension funds performed following the decision of a participant to change pension funds, or in cases where the assets collected by the participant are to be reallocated. KDPW also manages the mandatory Pension Guarantee Fund, made up of contributions from Pension Fund Management Companies, which safeguards pension payments to fund members.