- In Sep. 2009, the G20 Pittsburgh summit has agreed upon four issues in strengthening the regulation on OTC derivatives trading which caused the bankruptcy of Lehman Brothers, triggering the global financial crisis:
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- G20 Leaders Statement: The Pittsburgh Summit
Improving over-the-counter derivatives markets: All standardized OTC derivative contracts should be traded on exchanges or electronic trading platforms, where appropriate, and cleared through central counterparties by end-2012 at the latest. OTC derivative contracts should be reported to trade repositories. Non-centrally cleared contracts should be subject to higher capital requirements. We ask the FSB and its relevant members to assess regularly implementation and whether it is sufficient to improve transparency in the derivatives markets, mitigate systemic risk, and protect against market abuse.
- In accordance with the G20 agreements on the mandatory central clearing of standardized OTC derivatives transactions, Korea also introduced relevant legal frame and began OTC clearing services.
- The FSCMA was revised and implemented on Jul. 6, 2013.
- The FSC authorized the KRX as an OTC derivatives clearing house (CCP) on Sep. 11, 2013.
- The KRX began clearing service for KRW interest rate swap (IRS) on Mar. 3, 2014.
- The mandatory clearing for KRW IRS implemented on Jun. 30, 2014.
- KRX obtained QCCP(Qualified CCP) from FSS(Financial Supervisory Service) on Sep. 30, 2014
- KRX obtained 3rd country CCP recognitions from offshore regulators.
CCP recognitions from offshore regulators Jurisdiction Regulator Contents US. CFTC KRX obtained an acknowledgement as the exempt DCO(Derivatives Clearing Organization) on Oct. 26, 2015. Europe ESMA KRX received the recognition as a qualified third country CCP on Apr. 22, 2016. Japan FSA KRX obtained an exemption for licensed CCP(for KRW IRS) from FSA of Japan on Jun. 25, 2014.
주의to be extended 6-months cycles