Market concentration trading system of small-lot bond was introduced for the purpose of improving convenience of buyers of the "add-on" fractional bonds and mitigating personal burden by way of raising easier exchange of bonds which are to be bought by persons at the time of registration of real-estate or automobile.
Liquidity being taken into consideration of, object of the system is the bonds having been issued in that month or in the preceding month and the offer of trading is less than 50 million Won of per account (or per person in case of common account).
In spite of the above system, if trading price of small-lot bond is above market price or made after trading hours, it is possible to have self-trading, with limitation to the trading with settlement in that day, outside of market on the basis of reported market return, and in this case the member is liable to report the KRX of trading hour per item, item and price (return).
In order to have smooth trading the KRX nominates, among member companies, exclusive members for buying small-lot bond who submit compulsory bid, which is being run with 20 firms as of Mars 2010.
Reported market return means the value calculated by the KRX ; arithmetic average price disregarding high price of 10% and low price of 20%. the KRX calculates the said ratio if an exclusive member company reports desired price for the purchase, in order to enhance easier exchange by persons who are to compulsorily purchase the "add-on" fractional bonds and to promote consumption of bonds based on market fair price. Reported market price is applied to trading at the time of market closing of the next day so that a person can dispose public bonds owned by him at this price.