Deutsche Bank Executes First RFI FX Trade in Korea

Deutsche Bank says it has become the first bank to execute a trade under the Registered Financial Institutions (RFI) programme in South Korea, a USD/KRW FX swap executed by Deutsche Bank’s London branch for Kookmin Bank’s Singapore branch.

The RFI programme was introduced by Korea’s Ministry of Economy and Finance and the Bank of Korea late last year to allow foreign banks to trade in South Korea’s onshore FX market. Effective from 1 January, 2024 (including a six-month pilot operation), the programme permits RFIs to conduct deliverable dollar/won spot, forward and swap trades, and quote prices to offshore clients and clear them with approved local agents.

Deutsche says it was one of the first foreign banks to join the programme in March, and its Frankfurt, London and Singapore branches are approved participants.

“We are proud to have executed Korea’s first RFI trade for Kookmin Bank, one of the country’s most important banks,” says Ashokkumar Das, global head of emerging markets & fixed income and currencies macro trading, Asia, at Deutsche Bank. “Being first to market is reflective of our strong FX capabilities, global network and agility. We look forward to continuing to support the opening up of the high potential Korean market.”

Dohun Lee, head of global emerging markets trading for Korea at the bank adds, “The RFI programme is an important step in further developing the Korean FX market and aligning it with international standards. It simplifies processes for our clients and importantly, will broaden market access globally. Our participation is reflective of our ongoing commitment to Korea.”