The Depository Trust & Clearing Corporation (DTCC) has signed a memorandum of understanding with the Korea Exchange (KRX) to cooperate on a trade repository solution in Korea.
KRX is the only securities and derivatives exchange operator in South Korea. The two institutions intend to build a long-term relationship, exploring the potential of direct links between the DTCC Global Trade Repository (GTR) and KRX.
A partnership could allow international firms to use GTR for cross-border transaction reporting to the South Korean regulator, improving transparency and cooperation across jurisdictions.
In this way, DTCC and KRX could help users to satisfy their regulatory reporting obligations through standardised and harmonised reporting fields.
Peter Tierney, head of GTR in Asia, said: "With the introduction of trade reporting in the US, Europe and across many Asia jurisdictions, a significant portion of the world's over-the-counter (OTC) transactions have already been reported through the GTR platform. A large percentage of the cross-border data needed by Korean regulators has already been collected.”
“Partnering with KRX will allow us to explore opportunities to bring operational efficiencies to firms that will be required to report Korean trades and deliver the highest quality data to the Korean regulators."
Kiwon Kang, president and COO of the KRX derivatives market division, added: “KRX plans to support the new OTC trade reporting regime for Korean regulators for local reporting. By combining our effort to establish an effective trade repository with DTCC’s abundant expertise and leading GTR solution, market participants will be able to report their OTC market transactions in a cost effective, streamlined manner.”
