KOFIA Selects Companies for Final Quote Yield Reporting on Bonds and More in Second Half of the Year

[Asia Economy Reporter Minji Lee] The Korea Financial Investment Association announced on the 29th that it has selected securities companies to report the final bid yield for bonds, negotiable certificates of deposit (CD), and commercial paper (CP) for the second half of this year.

The association has been selecting securities companies verified for price discovery ability as final bid yield reporting companies every six months, considering transaction performance in the bond, CD, and CP markets, to maintain and enhance the stability and representativeness of the final bid yield, which serves as the benchmark interest rate in these markets.

Among the 10 securities companies reporting the final bid yield for bonds, one company has changed. The final bid yield for bonds is used as the benchmark yield in the Korean bond market. For 16 types of bonds with high market utilization, including 3-year government bonds, the average yield is calculated and disclosed by excluding extreme values (top and bottom two) from the yields reported by the 10 reporting companies.

Among the previous companies?KB Securities, NH Investment & Securities, SK Securities, Meritz Securities, Bookook Securities, Shinhan Financial Investment, Hi Investment & Securities, Korea Investment & Securities, Mirae Asset Securities, and Hyundai Motor Securities?Mirae Asset Securities has been replaced by Hanyang Securities.

For the final bid yield reporting securities companies for CDs, three out of ten companies have been replaced. The CD final bid yield is used as a reference rate for CD transactions, derivative product transactions, and floating rate loans. The average yield is calculated and disclosed by excluding extreme values (top and bottom one) from the 91-day yields issued by commercial banks (AAA rated) and special banks (Korea Development Bank, Industrial Bank of Korea) reported by the 10 reporting companies that mediate CDs.

The previous companies were KTB Investment & Securities, SK Securities, Cape Investment & Securities, Kyobo Securities, Bookook Securities, Eugene Investment & Securities, Ebest Investment & Securities, Kiwoom Securities, Hana Financial Investment, and Hyundai Motor Securities. SK Securities, Cape Investment & Securities, and Hyundai Motor Securities have been replaced by NH Investment & Securities, DB Financial Investment, and Hanwha Investment & Securities.

The CP final bid yield is used as a reference rate for CP transactions. The average yield is calculated and disclosed by excluding extreme values (top and bottom one) from the yields (A1, 91-day basis) reported by six securities companies and two banks engaged in CP brokerage. Among BNK Investment & Securities, KTB Investment & Securities, Bookook Securities, Eugene Investment & Securities, Hi Investment & Securities, IBK Investment & Securities, Shinhan Bank, and KEB Hana Bank, IBK Investment & Securities has been replaced by NH Investment & Securities for this role.

This content was produced with the assistance of AI translation services.