KOREAN REBUBLIC: KRX Obtains Acknowledgement as a Clearing Organisation from CFTC

Thursday October 29 2015

On 26th October 2015, the Korea Exchange (KRX) has obtained an acknowledgement as an Derivatives Clearing Organization (DCO) from the U.S. Commodity Futures Trading Commission (CFTC).

Derivatives Clearing Organization (DCO) is the term for CCPs in the Commodity Exchange Act in the U.S. In order to clear the trades of U.S. persons, a clearing entity should be acknowledged by the CFTC by either registering as a DCO or obtaining an exemption from registration. DCO registration involves a direct regulation of KRX by the CFTC and it can cause an overlap in supervisory authority issue between the U.S. and the Korean government. Therefore KRX pursued “exemption from DCO registration”.

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