Markit And KRX Connect For Clearing Interest Rate Swaps
KRX started clearing interest rates swaps in March 2014, with mandatory clearing of interest rate swaps denominated in Korean won (KRW) beginning June 30th 2014. MarkitSERV is the first global trade processing service to connect to KRX, enabling 17 international and Korean banks that are MarkitSERV customers as well as KRX members, to be able to confirm and clear trades seamlessly. In the first week of mandatory clearing, KRW 291 billion (equivalent to USD 288 million) of interest rate swaps were successfully sent by MarkitSERV for clearing at KRX.
Alex Park, head of Financial Markets at Standard Chartered Bank in Korea, said: “As we move into an increasingly regulated trading world for OTC transactions, we rely on technology and service partners such as Markit to help us connect with clearing houses, clients and repositories.”
Byung Woo Yuh, senior manager, F/X Derivatives Trading Department, Financial Trading Division, Hana Bank, said: “We are pleased to partner with Markit on the KRX clearing initiative. Leveraging MarkitSERV’s connectivity to KRX provides the bank with an efficient and integrated solution to its electronic processing and clearing requirements in Korea, and will also provide us with the ability to connect to a global network of counterparties, clearinghouses, trade repositories and other market infrastructure.”
Henry Hunter, managing director and global head of derivatives processing at Markit, said: “KRX is an important addition to our global OTC clearing gateway service and this expansion demonstrates our commitment to serving the evolving needs of global banks, regional banks and asset managers in Asia.”
Julian Chesser, managing director and head of derivatives processing for Markit in Asia, said: “Our new solution for clearing in Korea is the result of extensive collaboration between KRX and MarkitSERV, as well as key industry players in the region, and we look forward to continued collaboration. Our work with KRX is another example of how Markit routinely expands its network to provide connectivity to all the major clearing and reporting venues in Asia.”
In Asia, the MarkitSERV platform also connects customers to the derivatives clearing services run by the Australian Securities Exchange (ASX), Hong Kong Exchanges and Clearing Limited (HKEx), Japan Securities Clearing Corporation (JSCC) and the Singapore Exchange (SGX).