Recently, as trade conflicts among major countries have intensified, volatility in global financial markets has increased, highlighting the growing importance of securing settlement stability. In this context, the Korea Exchange Clearing and Settlement Division (CCP), now in its fifth year of operation, has played a key role in enhancing settlement stability in the capital market.
According to the Korea Exchange on May 22, 2025, the average daily settlement amount in the on-exchange securities market (including stocks and bonds) in 2024 reached 3.5 trillion won, an increase of 9.8% compared to the previous year's 3.2 trillion won. This figure accounts for only about 11% of the average daily trading volume of 31.6 trillion won, demonstrating that the Clearing and Settlement Division has significantly reduced market risk by efficiently netting transaction records through net settlement.
In particular, in the stock market, the average daily settlement amount in 2024 reached 840 billion won, a 28% increase from the previous year's 660 billion won, marking the highest level since 2021. This increase occurred despite a slight decrease in the average daily trading volume in the stock market, as intraday short-term trading declined, reducing the netting effect and resulting in a higher settlement amount. Nevertheless, the ratio of settlement amount to trading volume remains as low as 4.4%, clearly illustrating the efficiency of net settlement in the stock market.
The netting effect was even more pronounced in the on-exchange derivatives market. In 2024, the average daily settlement amount surged by 47.9% from the previous year's 132.5 billion won to a record high of 196 billion won. This was mainly due to an increase in hedging transactions using stock futures following the ban on short selling. Despite a 14.3% increase in the average daily trading volume to 67 trillion won from the previous year's 58.6 trillion won, the settlement amount accounted for only about 0.3% of the trading volume, reaffirming the Clearing and Settlement Division's core role in enabling the settlement of complex derivatives transactions with minimal risk.
Not only in the on-exchange market, but also in over-the-counter (OTC) derivatives clearing, remarkable growth continues. In particular, the annual cleared registration amount for Korean won interest rate swaps (IRS) reached a record high of 1,339 trillion won in 2024, up from just 213 trillion won at the start of the service in 2014, due to increased hedging demand amid greater market volatility. This represents more than a sixfold increase in just ten years since the launch of the clearing service. The outstanding clearing balance also rose to 1,977 trillion won.
Since its expansion and reorganization as a division in April 2021, the Clearing and Settlement Division has served as a solid safeguard for the capital market, covering not only the clearing and settlement of on-exchange securities and derivatives but also OTC derivatives clearing and settlement.
To address risks associated with the expanding market size, the Clearing and Settlement Division has continuously increased its settlement resources, now securing more than 24 trillion won as of the end of March. This provides a stable foundation to cover losses in the event of a settlement default.
In particular, with the planned introduction of an alternative trading system (ATS) and nighttime derivatives trading (scheduled for June), the division is further strengthening its risk management system by extending risk management hours into the night and enhancing stress tests for various scenarios.
These efforts by the Clearing and Settlement Division have also been recognized by global financial regulatory authorities. Following certifications from Japan (2014), the United States (2015), and Europe (2016), the division obtained the 'Qualified CCP' certification from the Swiss financial authorities last year. This is significant as it enables foreign financial institutions to trade stably in the domestic market.
The Clearing and Settlement Division is pursuing several development initiatives with the goal of providing comprehensive clearing services at the level of global CCPs. To support the financial authorities' policy of expanding the use of the risk-free reference rate (KOFR), the division plans to begin clearing interest rate products (OIS) from October this year and is also preparing to expand clearing for foreign exchange derivatives (such as NDFs).
A representative of the Korea Exchange Clearing and Settlement Division stated, "The Clearing and Settlement Division is striving to become a trusted clearing and settlement institution through communication with the market, and will continue to faithfully fulfill its role as the 'guardian of the Korean capital market' by steadily advancing its development initiatives."
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