"T+1, Tokenized Securities Discussed" Eokwon Lee Meets with Nasdaq, DTCC, and HKEX Representatives

Eokwon Lee, Chairman of the Financial Services Commission, met with key representatives from global stock market infrastructure institutions such as Nasdaq in the United States, the Depository Trust & Clearing Corporation (DTCC), and the Hong Kong Exchanges and Clearing Limited (HKEX) to discuss major capital market issues, including shortening the stock settlement cycle (T+1) and the advancement of tokenized securities.

On the afternoon of the 29th, Eunok Lee, Chairman of the Financial Services Commission, held a meeting at The Grand Lotte Seoul with Bob Mcquoy, Vice Chairman of Nasdaq, Timothy Kudihy, Chief Risk Officer of the Depository Trust & Clearing Corporation (DTCC), and Taesuk Yoo, Executive Director of the Hong Kong Exchange, and took a commemorative photo. Financial Services Commission

The Financial Services Commission announced that on the afternoon of the 29th, Chairman Lee had a meeting with Bob McCooey, Vice Chairman of Nasdaq, Timothy Koerdy, Chief Risk Officer (CRO) of DTCC, and Taeseok Yoo, Executive Director of the Hong Kong Exchange, at The Grand Lotte Seoul, where the Korea Premium Week Conference was being held.

During the meeting, they exchanged experiences and perspectives from each country and discussed cooperation plans regarding the future of capital markets, such as the development of tokenized securities, the transition to T+1 settlement cycles, the separation of market segments, and delisting systems to enhance market dynamism.

Representatives from DTCC first noted that tokenized securities are expected to become a core industry for the global capital market in the future. They also introduced the collaborative efforts between Nasdaq and DTCC supporting the growth of the tokenized securities sector in the United States. In addition, they emphasized the need for close coordination of detailed frameworks among relevant institutions in Korea, especially as the Electronic Securities Act is set to take effect in February next year, which will accelerate the development of Korea's own tokenized securities ecosystem.

Representatives from the Hong Kong Exchange, who have announced plans to shorten the settlement cycle to T+1 starting in the second half of next year, explained their progress on this initiative. They pointed out that introducing tokenized securities, extending trading hours, and developing various IT systems are all underway simultaneously, which increases personnel and time demands. They also noted that time zone differences between Asia and the English-speaking regions must be practically considered in the process.

Nasdaq representatives shared their experiences operating a market segment separation system and enforcing delisting rules for penny stocks under $1, which have been implemented to increase market competitiveness. They further exchanged views on the development direction of Korea’s exchange-traded products (ETP), drawing on examples of various indices and index-linked products operated by Nasdaq.

Chairman Lee stated, "The vivid success stories and lessons learned from core global infrastructure institutions serve as invaluable, proactive guidelines for our policy implementation. We will continue to communicate openly and maintain close exchanges with the global capital market."

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