DTCC to Cooperate with Korea Exchange on Trade Repository Solution

The Depository Trust & Clearing Corporation (DTCC), a provider of market infrastructure for the global financial services industry, and the Korea Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (KRX), the sole securities and derivatives exchange operator in South Korea, today signed a Memorandum of Understanding (MOU) to cooperate with each other on establishing a trade repository solution in Korea.

Finance Magnates recently reported on a further DTCC synergy with Digital Asset Holdings to develop a distributed based ledger solution as part of the company's overall plan to help secure and shape the future growth and development of the global financial marketplace.

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The companies will explore linking DTCC’s Global Trade Repository (GTR) solution directly to KRX, allowing international firms to Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term GTR for cross-border transaction reporting to Korean regulators. The aim is to add transparency, foster cooperation across jurisdictions and help users to satisfy their regulatory reporting obligations leveraging standardized and harmonized reporting fields.

Peter Tierney, Head of GTR Asia, commented: "With the introduction of Trade Reporting in the US, Europe and across many Asia jurisdictions, a significant portion of the world's OTC transactions have already been reported through the GTR platform. 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 Derivatives Market Division of the Korea Exchange, stated: “KRX plans to support the new OTC trade reporting regime for Korean regulators for local reporting. By combining our effort to establish an effective TR 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.”

The DTCC Global Trade Repository (GTR) holds detailed data on OTC derivatives transactions globally which is used for managing systemic risk while providing regulators with transparency into the market. It is the only non-commercial global provider of transaction reporting services, helping market participants address important operational and regulatory challenges. KRX was designated as a TR service provider by the Financial Services Commission in Korea in August, 2015.