KRX Repo is different from the OTC repo market in that trading conditions in the market are standardized; KRX, as a central counterparty, guarantees settlement and provides integrated services covering quotation searching, trade execution and clearing and settlement.

Trading and settlement systems were designed to suit the continuous auction in the exchange market, based on the Global Master Repurchase Agreement (GMRA) as an international standard.

Market Participants and Trade Counterparties

Market participants are those of KRX KTB, KSFC (Korea Securities Finance Corp.) and BOK. KRX keeps trade counterparties anonymous (referred to as no name give-up), so as to not expose the position risks of each trading party.

All trades and non-repurchase agreement data are managed by each counterparty. When a settlement default occurs, KRX takes responsibility for the completion of settlement as a central counterparty to the seller and buyer.

Tradable Bonds

Securities traded by repo can be bonds, stocks, commercial paper (CP), certificates of deposit (CD), and MBSs, but repo trade in KRX Repo is limited to certain listed bonds as below. Tradable bonds are limited to those with low risk, ample liquidity, and a broad investor base.

Classification Bond Requirements
Government bonds (GA)
  • Korea Treasury Bonds
  • Foreign exchange Fund Bonds
  1. Outstanding amout of more than KRW 200 bil.
  2. Vanilla bond
MSBs and DIFBs (SA)
  • Monetary Stabilization Bonds
  • Deposit Insurance Fund Bonds
Others (CA)
  • Corporate bonds
  • Special bonds
Requirements above plus an issuer of bonds and/or a guarantee agency with credit rating over AA-
Trading Term and Repurchase Date

Most of the repo trade have a term of less than 1 year. There are 10 standardized repo terms: overnight, 2 days, 3 days, 4 days, 7 days, 14 days, 21 days, 30 days, 60 days, and 90 days. The repurchase date is the 2nd day, 3rd day, 4th day, 5th day, 8th day, 15th day, 22nd day, 31st day, 61st day, and 91st day, respectively, counting from the day on which the purchase price is settled (when the purchase date is a trading holiday, the repurchase is postponed to the next business day).