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.