KIS Asset Evaluation Holds Seminar on Margin Exchange System for Non-Cleared OTC Derivatives Transactions

[Asia Economy Reporter Lee Jung-yoon] KIS Asset Appraisal announced on the 7th that it will hold a seminar on strategies to respond to the 'Non-Cleared OTC Derivatives Transaction Margin Exchange System' targeting financial industry practitioners.

The seminar, held today on the 9th, will cover an introduction to initial margin regulations, future outlook and response strategies, Citibank's response cases, an introduction to DTCC (U.S. Depository Trust & Clearing Corporation)'s global settlement infrastructure, and cases of global financial institutions building automated margin call systems. Additionally, Lee Hee-yeon, Executive Director of Citibank, and Park Hong-geun, Head of DTCC Korea Branch, will participate as speakers and conduct a Q&A session.

This seminar is jointly hosted with Acadia, a U.S. company that occupies about 98% or more of the global margin automation solution market. Acadia supports the entire margin management process including margin calculation, margin call automation, and collateral management, and is recognized as the global standard in practice.

Since September last year, the Financial Supervisory Service has been enforcing a system requiring financial companies with non-cleared OTC derivatives transaction balances exceeding 70 trillion KRW to mandatorily exchange initial margins with counterparties. From September this year, the scope of application has been significantly expanded to include financial companies with non-cleared OTC derivatives transaction balances exceeding 10 trillion KRW.

Song Young-jun, Executive Director of the Financial Consulting Division at KIS Asset Appraisal, said, "We hope that domestic financial companies will find effective management methods regarding collateral contract information management, efficient initial margin exposure management, and automation of margin call transmission and reception through this seminar, and be able to proactively and actively respond to the new OTC derivatives regulatory environment."

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