SK CB More Flexible Liquidity Control

Published on: Jul 1, 2025

On Jun. 26, SK CB revised regulations for more flexible repo trading.

  • SK CB revised Open market operation (OMO) regulations, Enforcement by-laws of the OMO regulations, Bidding procedures for the OMO, for more flexible liquidity control.
  • Outline of Revisions
  • Implement two-way repo trading by conducting regular repo purchase on Tuesdays with a 14-day maturity in addition to repo sales on Thursdays with 7-day maturity.
  • Expand securities subject to repo trading, by adding three special bank bonds including industrial finance bonds, SME finance bonds, and export-import finance bonds.
  • Increase incentives to participate in repo trading, by improving criteria for selecting target institutions (TIs) for repo trading, benefits for excellent repo trading institutions.
  • Effectiveness
  • Revised regs and procedures will be implemented from Jul. 10, 2025, except changes in criteria for selecting TIs for repo trading will be implemented from Aug. 1, 2025.
Regulators
SK CB
Entity Types
B/D; Bank
Reference
RF, PR 2025-06-27, 6/26/2025
Functions
Compliance; Financial; Legal; Operations; Risk; Trading; Treasury
Countries
South Korea
Category
State
N/A
Products
Banking; Fixed Income; Repo/Reverse; Securities
Rule Type
Final
Regions
AP
Rule Date
Jun 26, 2025
Effective Date
Jul 10, 2025
Rule ID
260105
Linked to
N/A
Reg. Last Update
Jun 26, 2025
Report Section
International