Korea Securities Depository "Advancing Financial Transaction Activation Including KOFR ETF Launch"

[Asia Economy Reporter Minji Lee] The Korea Securities Depository announced on the 28th that financial product transactions based on the Korea Overnight Risk-Free Rate (KOFR) are becoming more active, with the launch of an ETF based on KOFR on the 26th.

The KOFR ETF is the second KOFR financial product following the KOFR futures listing after the Korea Securities Depository's KOFR calculation and disclosure. So far, the Korea Securities Depository has carried out related tasks such as KOFR information usage approval, participant authorization, and professional transmission and reception linkage to support the listing of KOFR futures and the launch of the KOFR ETF.

The newly launched KOFR ETF aims primarily to track the return of the KOFR INDEX, its benchmark, while seeking limited excess performance compared to the KOFR index.

The Depository stated, "The launch of the KOFR ETF will raise market participants' interest in KOFR, increase KOFR swap and futures trading, thereby revitalizing the RFR derivatives market and promoting the launch of KOFR spot products." They added, "We will do our best to activate KOFR financial product transactions, and to this end, we plan to actively support the market establishment of KOFR through KOFR registration with the International Swaps and Derivatives Association, support for the formation of KOFR interest payment methods, joint research and seminars with academia, and more."

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