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MarkitServ connects to Korea Exchange for swaps clearing

First Published 8th July 2014

Markit and Korea Exchange connect for clearing interest rate swaps.

Henry Hunter, managing director and global head of derivatives processing, Markit

Henry Hunter, managing director and global head of derivatives processing, Markit

"This expansion demonstrates our commitment to serving the evolving needs of global banks, regional banks and asset managers in Asia."

London and New York - Markit, the financial information services provider, has announced that MarkitSERV, its electronic trade processing service for over-the-counter derivatives, is now connected to the Korea Exchange (KRX).

KRX started clearing interest rates swaps in March 2014, with mandatory clearing of interest rate swaps denominated in Korean won (KRW) beginning June 30th 2014. MarkitSERV is the first global trade processing service to connect to KRX, enabling 17 international and Korean banks that are MarkitSERV customers as well as KRX members, to be able to confirm and clear trades seamlessly. In the first week of mandatory clearing, KRW 291 billion (equivalent to USD 288 million) of interest rate swaps were successfully sent by MarkitSERV for clearing at KRX.

Henry Hunter, managing director and global head of derivatives processing at Markit, said: "KRX is an important addition to our global OTC clearing gateway service and this expansion demonstrates our commitment to serving the evolving needs of global banks, regional banks and asset managers in Asia."

Julian Chesser, managing director and head of derivatives processing for Markit in Asia, said: "Our new solution for clearing in Korea is the result of extensive collaboration between KRX and MarkitSERV, as well as key industry players in the region, and we look forward to continued collaboration. Our work with KRX is another example of how Markit routinely expands its network to provide connectivity to all the major clearing and reporting venues in Asia."

In Asia, the MarkitSERV platform also connects customers to the derivatives clearing services run by the Australian Securities Exchange (ASX), Hong Kong Exchanges and Clearing Limited (HKEx), Japan Securities Clearing Corporation (JSCC) and the Singapore Exchange (SGX).