|
|
 Secondary
Market |
The secondary market is divided into two markets ！the OTC
and the KRX. |
， The KRX is an organized
market, offering competitive trading of listed
bonds.
， The OTC operated by
KOFIA, however, has both listed and unlisted
bonds
traded one-to-one between retail investors
and securities firms, or between financial
institutions. |
| Trading
System |
| Category |
OTC |
KRX |
Type(s)
of bonds
Trading method
Trading site
Settlement day
Trading unit
Quotation unit
Bid-ask price unit |
Listed
and unlisted bonds
Individual trading
Securities companies
Cash transactions or negotiable (T+1~T+30)
No restrictions
No restrictions
No restrictions |
Listed
bonds only
Group trading
Korea Stock Exchange
Cash transactions (T+1)
Par value base: W100,000
Price base
No restrictions |
|
| Listing
Requirements |
A bond must first
be listed before trading commences. All
other bonds, barring government and public
bonds, must meet the listing requirements.
|
| Classification |
Listing Requirement |
Paid-in capital of Issuer
Time limit for listing
Total face value
Other
|
Minimum 500 million won
Within one year after bond issuance
300 million won or more
(50 million won or more for guaranteed and mortgage bonds)
Publicly issued, except bonds with warrants or convertible bonds |
|
| Yield
Disclosure System |
|
The KSDA is responsible for any disclosure or
administration of information related to over-the-counter
trading, including yields, trading volume,
trading value, issuing terms and conditions,
and trading results. |
Disclosures are made available through Korea
Securities Computer Corporation (KOSCOM) terminals
and also through KSDA website (www.ksdabond.or.kr).
|
|
The KSDA announces the following yields daily
: |
， Representative bond yield (RBY) : a weighted-average
yield of certain bonds in terms
of trading volume
， Final quotation bond yield (FQBY) : the
final yield at which bonds are traded or the
last yield
quoted for daily transactions.
|
|
The KSDA has discontinued its function of providing
mark-to-market base yield (MMBY). As of October
2003, this service is provided by three private
companies, i.e., KIS Pricing, Inc., NICE Pricing
Services, Inc., and Korea Bond Pricing &
KR, Co. KSDA now monitors these companies
for their proper execution. |
|
In terminating its duty of determining MMBY,
the KSDA has rephrased its prior mark-to-market
service to "Base Yields according to
Bond-Type and Remaining Maturity", now
disclosing yields as reference for the market,
starting January 2004. As such, ITCs, banks
and other financial institutions, may only
officially use those mark-to-market yields
offered by the three private companies. |
 |
|
| |
Final
Quotation Yield |
Representative
Yield |
|
Established
|
1 July 1993 |
1 May 1993 |
|
Feature
|
Either the
yield of the final daily trade or the
yield of the last traded quotation |
Weighted average
yields in terms of trading volume |
|
Eligible firms
|
Ten securities
companies selected by KSDA (for six-month
duration) |
All securities
companies |
|
Scope of bonds reported |
Treasury Bond
(one-year, three-year, five-year and
ten-year maturities)National Housing
Bond Type グ (five-year maturity)Monetary
Stabilization Bond (364-day, two-year
maturity)Financial Industry Bond (one-year
maturity)Corporate Bond (three-year
non-guaranteed) AA-, BBB-CD (ninety-one-day)CP
(ninety-one-day)KEPCO Bond (three-year
maturity) |
Treasury Bond
(three-year, five-year, ten-year maturities)National
Housing Bond Type グLocal Development
Securities Property Development Bond Monetary
Stabilization Bond (364-day, two-year
maturity)Financial Industry Bond (one-year
maturity)Corporate Bond (three-year
non-guaranteed)KEPCO Bond (three-year
maturity) |
|
Designated notifier
|
Middle manager-level
or higher
|
Broker |
|
Yields reported
|
Last real-traded
yield or final quotation yield by 11:30AM
and 3:30PM |
After every
transaction |
|
Reporting method
|
Internet |
KOSCOM on-line
computer network |
|
Disclosure method
|
Bond Market
Daily KSDA website KOSCOM Check Terminal facsimile
to major news media |
Bond Market
Daily KSDA website KOSCOM Check Terminal |
|
Tallymethod
|
Adoption of
most frequent quoted yields |
Weighted average
yield in terms of trading volume |
|
Disclosure time
|
Daily by 12:00PM
and 4:00PM |
Soon after
transaction; announced next day in Bond
Market Daily |
|
 |
|
|
|
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