Exchange "KRX-TR Operation Started 1 Year... Recorded 770,000 Transaction Balances"

[Asia Economy Reporter Minji Lee] The Korea Exchange (KRX) announced on the 28th that the 'Korea Exchange Trade Repository (KRX-TR)', introduced to enhance transparency in the over-the-counter (OTC) derivatives market and mitigate systemic risk, has reached its first anniversary of operation. KRX-TR was launched on April 1st last year.

Since the start of KRX-TR operations, as of the end of last month, 267 companies have registered as TR users, with approximately 770,000 outstanding transactions and a cumulative total of 1.9 million reports submitted. Aggregating the transaction balances collected through the trade information, the total outstanding amount in the domestic OTC derivatives market was found to be 1,475.8 trillion KRW.

By underlying asset, interest rates (1,209.3 trillion KRW, 81.9%) and FX (247.5 trillion KRW, 16.8%) accounted for the majority (98.7%), followed by credit, equity, and general commodities.

By product type, interest rate swaps (1,191.3 trillion KRW, 80.7%), FX forwards (246.4 trillion KRW, 16.7%), interest rate options (13.1 trillion KRW, 0.9%), credit swaps (9.5 trillion KRW, 0.6%), and equity swaps (7.2 trillion KRW, 0.5%) ranked in order. FX forwards refer to transactions where spot and forward foreign exchange contracts are simultaneously bought (sold) and forward contracts are sold (bought).

By financial sector, banks (881.1 trillion KRW, 59.7%) held the largest share, with foreign banks, domestic banks, securities firms, asset management companies, and insurance companies following in detail.

Regarding this, the exchange stated, "To effectively support systemic risk management in the OTC derivatives market, continuous improvements related to enhancing the accuracy of TR data, such as resolving reporting errors by reporting institutions, will be necessary."

Furthermore, the exchange added, "Going forward, KRX-TR plans to strengthen monitoring of TR reporting status and improve data management systems to enhance the reliability of TR data," adding that through strengthening market statistics disclosure and advancing TR services, it will contribute to improving the soundness and transparency of the OTC derivatives market as a financial market infrastructure (FMI)."

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