Published On: Thu, Mar 6th, 2014

KRX Launches Voluntary Clearing Of OTC Derivatives

KRX CEO Kim Bong Soo

KRX CEO Kim Bong Soo

Korea Exchange(KRX) began to provide voluntary clearing service of the Korea Won(KRW)-denominated Interest Rate Swap(IRS) contracts to meet the G20 mandate(Sep. ’09) on over-the-counter(OTC) derivatives clearing. KRX expects the new service will significantly lower systematic risks in OTC derivative clearing and also improve overall market transparency.

The service is temporarily offered to 35 members on a voluntary base until June 30. Thereafter all KRW-IRS contracts are to be cleared through KRX on a mandatory base making KRX the 3rd CCP(Central Counterparty) in the world to offer mandatory clearing of OTC derivatives after Japan and the US.

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