About Market-Making

In addition to the PD's market-making obligation, Ordinary dealers are also allowed to participate in the market-making to enhance the liquidity in KRX KTB. The market-making is applicable not only to the benchmark KTBs but also to the non-benchmark KTBs.

Designation and Termination of Designation as Market-Making Member

A Government bond dealer who intends to be a market-making member should file an application for designation by the deadline set by KRX each quarter.

Termination of designation

The designation is terminated by an application of the member, when the member is found to have been under disciplinary actions by the Market Oversight Committee because of an unfair trading in relation with the market-making or in case where the member does not satisfy the basic requirements on the number of market-making issues for a certain period.

Method of Market-Making

Market-making members are required to place both-sided quotations (bid and ask) for 6 issues including 3 benchmark issues. The spread and amount requirements for the benchmark issues are the same as those of PDs under the Regulations on KTB Issuance and PD Operation, while those for the non-benchmark issues are 8bp and KRW 1 bil.

< Basic Market-Making Requirements >
Requirements Details
Number of Issues

6 issues or more (including at least 3 benchmark issues) per day

Market-Making Time
  • At least 2.5 hours in the morning (9:00~12:00), and full hours in the afternoon (13:30~15:30). (For 30-year KTBs, 2 hours in the morning and 1 hour in the afternoon)
  • Those market-making time is counted only when it is 80% or longer of each aforementioned time in the morning or afternoon.
Market-Making Days

80% or more of the total trading days during the assessment period

Benefits for Market-Making Members

Trading fees are not imposed on transactions by the market-making quotations. In addition, KRX pays for market-making according to each member's performance.