Tradable securities in the KRX REPO market are, among those with KRW 200 billion outstanding amount (par value) as of trading date, treasury bond, foreign exchange stabilization bond, monetary stabilization bonds, KDIC bond, corporate bonds with credit rating of AA or higher and other specific law bonds.
Accordingly, excluded from REPO transaction are such items as redemption-by-installment bond, floating rate note except Korea treasury bond, equity-related bond, mortgage bond, privately-offered bond, subordinate bond, asset-backed bond, etc.
In other words, tradable securities in the KRX REPO market are government bonds (treasury bond, foreign exchange stabilization bond), specific laws bond (monetary stabilization bonds, KDIC bond) and blue-chip company bond (credit rating over AA) that satisfy aforementioned requirements.
|Specific laws bonds||
||above ①② + bonds with credit rating over AA|
Most markets of advanced countries generally adopt term REPO which specifies trading period at the contract date of REPO, and most of the period are within 1 month. Term REPO is applied to the KRX REPO market following international tendency and 6 terms (1-day, 2-day, 3-day, 4-day, 7-day , 14-day, 21-day and 30-day), having less than one month trading period with abundant liquidity, 60- day and 90-day REPO are available.
Quotation receiving and trading time at REPO market of the KRX is from 09:00 to 15:30, the same as that of KTB market to keep close link with the debt securities market of the Exchange.
Considering the characteristic of REPO trading, bids/asks are made using the repo rate. Prices are quoted to two decimal point of the repo rate (1/100 of 1%) and quotation quantity unit and trading unit are KRW 10,000 and KRW 1 billion based on par value, respectively.
Only designated quotations are applicable in the case of REPO selling, while both designated quotations (kind of special collateral quotations) and non-designated quotations (kind of general collateral quotations) are accepted in the case of REPO buying.
Participant in the market places order to the KRX through Web-Browser installed in his own PC.