SEOUL- South Korea is considering easing real-time reporting requirements for investors in the nation’s $1.8 trillion bond market as it seeks inclusion into FTSE Russell’s global bond index, three people familiar with the matter said.
The finance ministry and the Financial Supervisory Service (FSS) are in talks to change a requirement for banks to report any bond trading in the over-the-counter market to authorities within 15 minutes of each transaction.
That rule has been a major pain point in the government’s efforts to court global investors into the Korean bond market. It would also need to be addressed as Korean bonds move to the Euroclear settlement platform from July this year.
No decisions have yet been made on the specific changes to the rules but could include reducing reporting requirements to once or twice a day, said the sources, which included a finance ministry official who declined to be named. A current 7pm local deadline for reporting would also need to be addressed.
