FOW Asia Awards: KRX continues rapid expansion of trading technology division

Awards for Asia special

World-famed for offering one of the most traded derivativescontracts, the Korea Exchange is also rapidly establishing itself as a leadingvendor of trading and clearing technology for exchanges.

Over the last twenty years the firm has been sellingtechnology to regional exchanges across trading, clearing and settlement,market surveillance and front office and depository systems.

It has implemented projects in Vietnam, Malaysia,Uzbekistan, Philippines, Laos, Cambodia and Thailand among other emergingmarkets.

Hot off the back of its FOW Award for the implementation atthe Thailand Stock Exchange last year, its work with the Baku Stock Exchange inAzerbaijan won the praise of the judges for the Awards for Asia 2016.

KRX successfully developed and implemented its system forthe Azerbaijan capital market in a project financed by World Bank.

KRX has not only fulfilled the technical requirements laidout by World Bank-employed consultants but managed to develop the total package, including a trading system for its Azerbaijani partner, in less than a year,including the full review of local regulations and requirements.

The trading system supports cash market and offersfull derivatives trading functionality.

The trading system is based on KRX’s Exture+ tradingplatform, which can handle throughput of more than 20,000 transactions per secondand supports stock, bonds, repo, futures and options and other asset classes ona single platform.

According to Jay Jinmo Gu, KRX Project Manager of theAzerbaijan project, the exchange can service the needs of a wide range ofexchange clients.

“We offer a tailored product to exchanges. All variety ofasset classes can be supported on the platform and we can fully customise theservice to the needs of the individual exchange,” he said.

“Exture+ is a highly flexible platform that can beconfigured to a specific market and is built around the FIX protocol so it canconnect to other systems.”

KRX offers its technology across three models: marketestablishment, market modernisation and IT infrastructure.

Its market establishment service is implemented in countriessuch as Laos or Cambodia that are building capital markets with no legacy.

The Azerbaijan project was a market modernisation, buildingon existing technology and providing extensive consultation on the requirementsof the Baku Stock Exchange.

KRX is dominant in the South East Asian region and is nowtargeting growth in the Middle East and Eastern Europe.

The exchange has a number of deals andongoing implementations in the pipeline, and, if its success in Asia is anything to go by, itsexpansion into new markets will be rapid.