Korea Exchange launches new trading system

Source: Korea Exchange

The Korea Exchange (KRX) launched successfully the next generation IT system (EXTURE) on March 23, 2009.

The EXTURE consolidates the trading systems, clearing and settlement systems and information dissemination systems of the 3 former exchanges that were consolidated under the KRX.

In terms of efficiency, processing capacity, flexibility and reliability, the KRX's next generation IT system is one of the most advanced systems in the world. Thus, it is anticipated that it will become a new growth engine of the KRX.

Specifically, to effectively accommodate the market liquidity, the processing capacity of system has been upgraded to 40 million quotes per day, which is 2 times the capacity of existing system. The roundtrip latency for order execution has been reduced to less than 0.08 seconds, which is one of the best in the world.

With the launch of the next generation IT system, all functions related to trading, e.g., order routing, order matching and execution, dissemination of market data, management of customer account book, etc., which the 3 Markets have been handling independently, will be integrated and standardized into a single process. Consequently, the internal efficiency of the member companies will be enhanced and it will also be an occasion for fundamentally improving the KRX's business practices.

Using the next generation IT system, the KRX intends to accommodate various products to be developed and introduced after the enforcement of the Financial Investment Services and Capital Market Act; establish the mechanisms for cross-boarder trading with such exchanges as CME and Eurex; and export the Korean-style market standards to the other foreign markets.

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