Korea Exchange to Operate Next-Generation Clearing and Settlement System from Next Month's 4th

The Korea Exchange announced on the 26th that it has completed the establishment of the clearing and settlement system as the second phase of the next-generation market system, 'X-TRADE 3.0,' and will operate it starting from the 4th of next month.

Korea Exchange, Yeouido, Seoul. Photo by Jinhyung Kang aymsdream@

Since October 2020, the Exchange has been promoting the X-TRADE 3.0 next-generation market system project to proactively respond to global regulations and systems and actively reflect the diverse demands of market participants. As the first phase, the trading execution and information distribution system was successfully launched on January 25th and has been operating normally since then.

Following this, the Exchange has completed the establishment of the clearing and settlement system as the second phase and will operate it from the 4th after a transition period during the Chuseok holiday. To verify the clearing and settlement closing operations and for member firms' self-verification due to system changes, the opening time of the EUREX night market on the 4th will be changed from the current 18:00 to 21:00.

The X-TRADE 3.0 clearing and settlement system has unified the user interfaces (UI) of on-exchange and off-exchange clearing and settlement members, which were previously separate, into an integrated UI to enhance the operational efficiency of member firms. It has also rebuilt the clearing and settlement systems for each market, including on-exchange, off-exchange, and general products, into an integrated clearing and settlement platform based on X-TRADE 3.0 technology. Additionally, a clearing-dedicated RDS (Reference Data Structuring and Parameter-based Application Design Environment) reflecting hierarchical structures such as members, accounts, and products was established to secure a flexible and scalable system for institutional changes. Furthermore, an integrated risk system for on-exchange and off-exchange was built to strengthen the risk management system with real-time risk calculation and simulation functions.

An Exchange official stated, "By establishing an integrated platform and dedicated RDS, we have secured system flexibility and scalability, providing an efficient work environment and enabling proactive responses to rapidly changing domestic and international market environments, such as the launch of Alternative Trading Systems (ATS)." He added, "The application of an independent risk management system will ensure compliance with global recommendations and create a stable trading environment."

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