Korea Securities Depository Signs First Contract for Foreign Investor Treasury "One-Stop Financing"

The Korea Securities Depository (KSD) announced today (August 21) that it has signed its first contract to provide the "KSD One-Stop Financing Service" to a foreign investor.

This service allows the KSD to act as a custodian and standing proxy for foreign investors, supporting securities financing transactions such as repurchase agreements (Repo), over-the-counter (OTC) derivative collateral, and securities lending and borrowing (SLB) linked to an omnibus account for treasury bonds.

Previously, foreign investors using only an omnibus account without a domestic standing proxy faced inconveniences, such as having to open separate accounts to conduct securities financing transactions.

With the introduction of this service, foreign investors can now handle treasury bond custody and financing transactions together through a single account opened with the KSD, without needing to appoint a separate domestic custodian.

This contract marks the first case where the KSD supports domestic collateral transactions as a central securities depository (CSD) agent for a foreign investor.

Lee Yoon-soo, CEO of the KSD, said, "We expect this to enhance foreign investors' accessibility and trading convenience in the domestic bond market," adding, "We will contribute to the revitalization of the treasury bond market by expanding the use of this service."
(Photo: Provided by Yonhap News TV, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.