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NYSE and Korea Exchange Sign MOU to Enhance Market Access
The New York Stock Exchange (NYSE) and the Korea Exchange (KRX) have formalized a partnership aimed at improving global investor access to South Korean capital markets. The memorandum of understanding (MOU) was signed on September 3, 2026, in New York and focuses on several key operational areas, including settlement modernization, extended trading hours, and the development of exchange-traded funds (ETFs).
A significant aspect of the agreement is the move towards T+1 settlement, which would allow trades to settle within one business day, aligning with global best practices. The NYSE has already implemented T+1 settlement, and KRX's interest in adopting this system indicates a commitment to enhancing operational efficiency. Additionally, the partnership aims to facilitate the creation of cross-listed or jointly developed ETFs, providing investors with more efficient access to each other's markets.
To oversee the implementation of these initiatives, the exchanges plan to establish a NYSE-KRX Joint Collaboration Council. While no specific timelines have been set for the proposed changes, the focus appears to be on developing a robust framework rather than rushing to launch new products. This MOU builds on a previous agreement made in 2004, which was less comprehensive and more symbolic in nature.
The timing of this partnership follows a recent Global Roadshow led by KRX Chairman and CEO Jeong Eun-bo, aimed at showcasing South Korean capital market reforms to institutional investors. The collaboration with the NYSE is intended to reinforce these reforms and enhance the attractiveness of South Korea's markets. For the NYSE, this agreement further extends its influence as a global market infrastructure partner. Investors are encouraged to monitor developments from the Joint Collaboration Council for updates on pilot programs related to extended trading hours and T+1 settlement testing.
Source: KLEA News