The Korea Exchange (KRX) has started to provide a voluntary clearing service for Korea Won (KRW)-denominated interest rate swap (IRS) contracts to meet the G20 mandate on over-the-counter (OTC) derivatives clearing. The KRX expects the new service to lower
systematic risks in OTC derivative clearing and also improve overall market transparency. The KRX has offered the service temporarily to 35 members on a voluntary basis until 30 June 2014. Thereafter, all KRW-IRS contracts will be cleared through the KRX
on a mandatory basis – making the KRX the third CCP in the world to offer mandatory clearing of OTC derivatives after Japan and the US.