After a lengthy regulatory screening process, the Korea Exchange has assumed the mantle of the country's over-the-counter trade repository in line with the policy of the G20.

In 2008, at the beginning of the current global financial crisis, the 'Group of 20' industrialised nations began to advocate national trade repositories as instruments to strengthen the regulation of over-the-counter derivatives markets. Trade repositories are financial market infrastructures that collect, manage and analyse data related to OTC transactions on behalf of government regulators. In line with the global trend, South Korea's Financial Services Commission and Financial Supervisory Service announced a plan to introduce "TR" long ago and have been preparing for it ever since.  

Introduction of TR in Korea  

The FSC, the Financial Supervisory Service and various financial experts formed a task force and conducted a thorough study related to "TR" in the latter half of 2014.

A special committee was formed in July 2015 to devise detailed qualification standards "to be designated as TR" in line with the results of that study. On 17 August, the Korea Exchange was finally "designated as TR" after going through a screening process that favoured it over the other bidder for the title - the Korea Securities Depository.  

Expected effects  

The introduction of "TR," which seems not to have happened fully, is expected to improve the credibility and global competitiveness of Korea’s financial market infrastructure. It is also expected to allow regulators to spot trends in the OTC market more efficiently. Private banks that trade on exchanges face high compliance costs here.