KOREAN REPUBLIC: Korea Exchange Designated as Trade Repository

Tuesday August 25 2015

In the aftermath of the global financial crisis, G20 nations are introducing Trade Repository(TR) as an instrument to strengthen regulations on over-the-counter derivatives market. TR is a financial market infrastructure that collects, manages, and analyses data related to OTC transactions. In line with such global trend, the FSC and FSS announced a plan to introduce TR in Korea on June 17, 2004 and have been engaging in relevant preparatory procedures.

The FSC, FSS, and financial experts formed a task force and conducted a thorough study related to TR from July to December, 2014. A special committee was formed in July 2015 to devise detailed qualification standards to be designated as TR based on the study results.

On 17 August 2015, the Korea Exchange was finally designated as TR after going through a screening process on two bidders for TR – the KRX and Korea Securities Depository.

Introduction of TR is expected to improve credibility and global competitiveness of Korea’s financial market infrastructure. It will also enhance financial transaction transparency and strengthen market monitoring capability as it enables more efficient management and analysis of data related to OTC derivatives transaction.

Click on the link above for further details.