The Korea Securities Depository announced that Clearstream’s full-fledged entry into the Korean government bond market following Euroclear has surpassed 10 trillion won ($7.1bn) in 15 months since the service began, according to Maeil Business Newspaper. In addition, foreign investors are promoting domestic collateral transactions.
As a CSD agent for foreign investors, Korea Securities Depository provides services that link local repurchase agreement (repo), OTC derivatives collateral, loans, and government bond integration accounts. This completes a CSD agent and storage agency model that supports not only cross-border government bond transactions but also collateral transactions in the region.
Lee Soon-ho, president of Korea Securities Depository, was cited in Maeil as stating: “If the opening of the integrated government bond account system last year provided a cross-border highway for foreign investors to trade government bonds in and out of the region, we will complete a toll gate that connects to the national road, which is a branch line, through this regional collateral transaction support service.”