KRX REPO trading system (summary)
item system
Type of REPO trading
  • Term REPO
  • Classic REPO
Market participant a security's member of the KRX(Included debt securities member)
Counter trading party the KRX (anonymous trading)
Eligible bonds for
  • government bonds (treasury bond, foreign exchange stabilization bond)
  • specific laws bond (monetary stabilization bonds, KDIC bond)
  • corporate bond (credit rating over AA) and other special bonds

As of the trading day, total par value of unredeemed bonds should be KRW 200 billion or more

Trading unit KRW 1 billion (par value basis)
Market value value calculated by the KRX based on evaluation values of 3 bond pricing agencies nominated by the head of FSC (simple arithmetic average price)
Trading amount market value of trading bond/[haircut (2%) +1]
repo rate Annual interest rate that the seller agreed to pay at the time
of repurchase
Repo terms & repurchase date 1 day (Overnight), 2-day, 3-day, 4-day, 7-day, 14-day, 21-day, 30-day, 60-day, 90-day (10 Repo terms)
Trading (offering) hours 9:00 ~ 15:30
Trading method individual competition trading with multiple prices (price/time priority)
(no auction at single price)
Realization of trading when there is a match between bid and asked
Kinds of quotation
  • ask : only designated quotation is accepted
  • bid : both designated and non-designated quotation are accepted

designated quotation: quotation that designates a specific issue

non-designated quotation: quotation that does not designate a specific issue

Quotation unit 0.01%p
Price limit not applicable

However, safety device for prevention of quotation input by mistake (dealer’s terminal/trading system)

KRX REPO settlement system (summary)
item system
Repurchase agency KRX
Settlement obligation KRX
Settlement method
  • cash payment : transfer in-between BOK reserves accounts (Bok- Wire)
  • securities delivery : account transfer on depositor’s account (KSD Safe)
Time limit to settle
  • trading portion : by 16:30 of trading day
  • repurchase portion : by 16:30 of repurchase day
  • deposit money/dividend : by 16:30 of accrual day
repurchase amount trading amount×(1+repo rate× contract term/365)
Return of dividend
(incl. Transfer pay)
return of interest accrued from trading bond/maintenance margin bond
Marking to market
  • settlement method : gross evaluation by considering all the contracts as single contract per trading counterparty.
  • Margin Call : when requested amount for settlement exceeds exemption rate
Type of deposit
  • haircut (initial deposit) : the amount to be borne by a seller due to discount of market
    value of trading bonds at initial trading contract
  • additional deposit : deposit to be paid according to Margin Call of the KRX
Payment of deposit
  • type : cash/bonds
  • payment : report by 15 :30/payment by 16:30
Substitution of bonds
  • reason : request by seller (allowed once per contract for only non-designated buying)
  • available period : next day of trading settlement~one day prior to repurchase
  • application/response : by 14:30/15:30
  • substitute bonds : bonds having more than evaluation value of trading bond before substitution
    (1 issue in the same bond category)
Exchange of bonds
  • reason : request by buyer due to default of trading bond issuer
  • available period : next day of trading settlement~one day prior to repurchase day
  • application/response : by 14:30/15:30 (earlier repurchase in case of refusal)
  • exchangeable bonds : bonds having at least the same evaluation value of trading bond (1 issue in the same bond category)
Earlier repurchase
  • reason : settlement default of a contract party, etc
  • settlement method : securities or cash