< Workflow of Clearing of OTC Derivatives Trades >
Clearing procedure of OTC Derivatives Transactions

Trade Execution
Directly between parities or via an inter-dealer broker (IDB)
IDB : Inter-dealer Broker
Trade Confirmation
Confirmation through KRX-provided system or a company providing trade confirmation service like Markit Wire (MarkitSERV)
Clearing at the CCP
  • Clearing confirmation by KRX
    Checking clearing requirements such as adequate contract specification, position limits, etc. for the clearing of eligible transactions
  • Clearing: assumption of obligations, netting and confirmation and notification of settlement details
    Through the assumption of clearing obligations by the CCP (KRX), the transaction between “Dealer A - Dealer B” converts into the transaction between “Dealer A- KRX” and the transaction between “KRX - Dealer B.”
Content Manager
  • OTC CCP Rules 051-662-2764