Background

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 analyzes 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.

Introduction of TR in Korea

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 August 17, 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.

Expected Effects

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.

*Please refer to the attached PDF for details.