New York/London/Singapore/Hong Kong/Sydney/Seoul, 10 May 2016 – The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, and the Korea Exchange (KRX), the sole securities and derivatives exchange operator in South Korea, today announced the signing of a Memorandum of Understanding (MOU) to cooperate with each other on a Trade Repository (TR) solution in Korea.
Under this MOU, DTCC and KRX express their intent to build a long-term relationship in order to establish a successful TR in Korea. To achieve this goal, these companies will explore linking DTCC’s Global Trade Repository (GTR) solution directly to KRX, allowing international firms to leverage GTR for cross-border transaction reporting to Korean regulators. The potential solution would add transparency, foster cooperation across jurisdictions, and help users to satisfy their regulatory reporting obligations leveraging standardized and harmonized reporting fields.
Peter Tierney, Head of GTR Asia, stated, "With the introduction of Trade Reporting in the US, Europe and across many Asia jurisdictions, a significant portion of the world's OTC transactions have already been reported through the GTR platform. A large percentage of the cross-border data needed by Korean regulators has already been collected. Partnering with KRX will allow us to explore opportunities to bring operational efficiencies to firms that will be required to report Korean trades and deliver the highest quality data to the Korean regulators."
Kiwon Kang, President & COO of Derivatives Market Division of the Korea Exchange, stated, “KRX plans to support the new OTC trade reporting regime for Korean regulators for local reporting. By combining our effort to establish an effective TR with DTCC’s abundant expertise and leading GTR solution, market participants will be able to report their OTC market transactions in a cost effective, streamlined manner.”
DTCC’s GTR has become the largest provider of global trade repository services in the world, facilitating reporting for over 7000 firms in 9 jurisdictions around the world. On August 17 2015, KRX was designated as a TR service provider by Financial Services Commission in Korea.
With over 40 years of experience, DTCC is the premier post-trade market infrastructure for the global financial services industry. From operating facilities, data centers and offices in 16 countries, DTCC, through its subsidiaries, automates, centralizes, and standardizes the post-trade processing of financial transactions, mitigating risk, increasing transparency and driving efficiency for thousands of broker/dealers, custodian banks and asset managers worldwide. User owned and industry governed, the firm simplifies the complexities of clearing, settlement, asset servicing, data management and information services across asset classes, bringing increased security and soundness to the financial markets. In 2015, DTCC’s subsidiaries processed securities transactions valued at more than US$1.5 quadrillion. Its depository provides custody and asset servicing for securities issues from over 130 countries and territories valued at US$45.4 trillion. DTCC’s global trade repository maintains approximately 40 million open OTC positions and processes roughly 280 million messages a week. To learn more, visit us at www.dtcc.com or follow us on LinkedIn, Twitter and YouTube.
Korea Exchange Inc., established in January 2005 through the merger of the Korea Stock Exchange (KSE), the Korea Future Exchange (KOFEX), the KOSDAQ Market, and the KOSDAQ Committee, is the sole exchange in the Republic of Korea. The KRX operates the centralized securities and derivatives markets where stocks, bonds and derivatives are traded on a common platform. To best service its clients, the KRX provides its customers with the full access to both cash and derivatives markets, and clears and settles all transactions on its markets as one-stop service. The KRX offers diverse derivatives products primarily in the following areas: individual stocks, stock index, bond/interest rate, foreign currency and commodities. Korea Exchange, KRX, KOSPI and KOSPI 200 are registered trademarks of Korea Exchange Inc. Further information about KRX and its products can be found at http://eng.krx.co.kr/index.html.