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Korea Exchange to serve as trade repository for OTC derivatives 

August 18, 2015

Kim Eun-jung, Yonhap News Agency

South Korea's bourse operator will serve as a trade repository that stores data on over-the-counter (OTC) derivatives trading to improve transparency and meet global standards, the financial regulator said Tuesday.

The Financial Services Commission (FSC) picked the Korea Exchange (KRX) as the trade repository in compliance with the sweeping regulatory rules introduced by advanced economies to clean up the derivative markets in the wake of the 2008 global financial meltdown.

Under the rules adopted by Group of 20 members following the financial crisis, traders must report their deals to the repository so regulators can see who trades what, when and at what prices.

"The trade repository is expected to enhance the credibility of the South Korean financial market and help it meet global financial standards," the FSC said in a release. "Managing data on the OTC trades will help improve transparency and facilitate market monitoring."

The bourse operator said it has been building infrastructure to handle the records of OTC trades, expecting to launch the service in the latter half of next year after the current financial regulation is revised.

The KRX operates a centralized market, where stocks, bonds and derivatives are traded on a common platform.

Read more: Yonhap News Agency

 
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