The Financial Services Commission of Korea adopted practical business guidelines to implement the Principles for Financial Market Intermediaries adopted by the Bank of International Settlements and the International Organization of Securities Commissions in April 2012 (click here to access). The business guidelines will apply to the Korea Exchange. Among other things, the Korea Exchange will have to review its “financial resources … necessary to conduct its business stably in extreme but plausible market conditions, and shall periodically review the adequacy of the size of the financial resources” and “shall establish a standard for the use of management and financial resources prefunded to cover credit risk” In December 2013, HanMag Securities Corporation sustained trading losses because of a run-away algorithm and defaulted on its obligation to the Korea Exchange.