About Market-Making

In addition to the KTB primary dealers, general dealers are also allowed to participate in the market-making activities to enhance the liquidity of the government bond market. The market-making is applicable not only to the KTB benchmark issues but also the non-benchmark issues.

Qualification of market-making members

A member qualified for the participation in the government bond market may apply for the market-making member.

Designation and termination of designation of market-making member

(Designation) A member who intends to be a market-making member should file an application for designation by the deadline set by the Exchange each quarter.

(Termination of designation) The designation is terminated by the application of the member, in case where 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 buying and selling quotations for 6 issues including 3 benchmark issues. The spread and amount requirements for the benchmark issues are the same as those in the market-making by the KTB Primary Dealers, while those for the non-benchmark issues are 0.1%p and KRW 1 bil.

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

6 issues or more (including at least 3 issues of benchmark issues)

Market-Making Time

At least 2.5 hours during 9:00 ~ 12:00, and full hours during 13:30 ~ 15:30 (For 30-year KTBs, 2 hours during 9:00∼12:00 and 1 hour during 13:10∼15:00)

Those market-making time is counted only when it is 80% or longer of each the available market-making time in the morning or afternoon.

Market-Making Days

80% or more of the total trading days subject to evaluation of market making performance

Benefits for market-making members

Trading fee is exempted for the transactions executed by the market-making quotations. In addition, the Exchange makes payment to market-making members according to their market-making performances.