Repositories
Central Clearing Requirements
Central Clearing Requirements Information Repository
Notes (Korea, Republic of-Korea Exchange)
(Last Updated: 19 November 2020)
Authority: | Korea, Republic of-Korea Exchange |
Jurisdiction: | Korea, Republic of |
Note 1 | Korea
Requirements of mandatory central clearing 1. Product : KRW IRS (pursuant to an ISDA Master Agreemen and ISDA Definitions) 2. Entity : Only apply to transactions between financial investment business entities 3. Type : Fixed interest rate is exchanged for floating interest rate for contract amount 4. Floating interest rate : 91-day CD rate(announced by KOFIA*) * KOFIA : Korea Financial Investment Association 5. Maturity : Up to 20 years(every 3 months) 6. Contract amount : From KRW 1 billion up to KRW 1 trillion 7. Legal basis : Financial Investment Services and Capital Markets Act / Enforcement Decree OTC Derivatives Clearing and Settlement Busines Regulation / Enforcement Rules OTC Derivatives Clearing and Settlement Busines Regulation / Enforcement Rules (a) not (i) a Type I Financial Instruments Business Operator, (ii) a bank which is a Registered Financial Institution, (iii) Development Bank of Japan, (iv) Shoko Chukin Bank, (v) Shinkin Central Bank, (vi) Nochu Bank, (vii) Insurance Company or (b) Financial Instruments Business Operator (average outstanding notional amount is less than JPY 300 billion). (Note: This exemption ((a) and (b)) is effective from 1 December 2014, (a)(vii)is effective from 1 December 2016) Source: Amendment to the Financial Instruments and Exchange Act of Japan, May 2010, amendment to the Cabinet Order and the JFSA Notice, June 2014, November 2014. |