The Depository Trust & Clearing Corporation (DTCC), a provider of market infrastructure for the global financial services industry, and the Korea Exchange (KRX), the sole securities and derivatives exchange operator in South Korea, today signed a Memorandum of Understanding (MOU) to cooperate with each other on establishing a trade repository solution in Korea.
Finance Magnates recently reported on a further DTCC synergy with Digital Asset Holdings to develop a distributed based ledger solution as part of the company’s overall plan to help secure and shape the future growth and development of the global financial marketplace.
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The 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 aim is to 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, commented: “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. 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 and COO of the 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.”
The DTCC Global Trade Repository (GTR) holds detailed data on OTC derivatives transactions globally which is used for managing systemic risk while providing regulators with transparency into the market. It is the only non-commercial global provider of transaction reporting services, helping market participants address important operational and regulatory challenges. KRX was designated as a TR service provider by the Financial Services Commission in Korea in August, 2015.