MarkitSERV connects to Korea Exchange

Markit’s OTC derivatives electronic trade processing service has integrated with the Korea Exchange.

Markit’s OTC derivatives electronic trade processing service has integrated with the Korea Exchange (KRX).

MarkitSERV is the first processing service to connect to KRX and will assist with the clearing of interest rate swaps as required by global regulation. The exchange began clearing interest rates swaps in March 2014, while mandatory clearing of Korean won (KRW) interest rate swaps began on 30 June 2014. Connected to the new trade processing service, 17 Korean and international banks are now able to confirm and clear trades much more efficiently.

“We are pleased to partner with Markit on the KRX clearing initiative,” commented Byung Woo Yuh, senior manager, FX Derivatives Trading Department, Financial Trading Division, Hana Bank. “Leveraging MarkitSERV’s connectivity to KRX provides the bank with an efficient and integrated solution to its electronic processing and clearing requirements in Korea, and will also provide us with the ability to connect to a global network of counterparties, clearing houses, trade repositories and other market infrastructure.”

MarkitSERV offers an integrated, multi asset class service managing trade confirmation and clearing, the allocation of block trades, and regulatory reporting in several jurisdictions. In addition, as well as providing market participants with a single point of access to 16 separate clearing houses, the global electronic trade processing service also connects customers to the derivatives clearing services of the Australian Securities Exchange, Hong Kong Exchanges and Clearing Limited, Japan Securities Clearing Corporation and the Singapore Exchange.

Head of financial markets, Standard Chartered Bank in Korea, Alex Park, commented: “As we move into an increasingly regulated trading world for OTC transactions, we rely on technology and service partners such as Markit to help us connect with clearing houses, clients and repositories.”

In the first week of mandatory clearing, KRX cleared KRW 291 billion (equivalent to US$288 million) worth of interest rate swaps through MarkitSERV.