Korean parliament fails to pass clearing bill
Failure to tackle Korea's default waterfall model puts pressure on Europe's already tight timetable
Korea's National Assembly has failed to pass a new bill on reforming the country's default risk waterfall model, raising questions about whether the EU will be able to grant Korea Exchange third-country central counterparty (CCP) status ahead of a September deadline.
The new law is needed to bring Korea more in line with Europe's clearing framework by making sure that, in the event of a default, the exchange assumes a portion of the losses before non-defaulting members start to foot the bill.
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