South Korea's Financial Services Commission announced key regulatory revisions and authoritative interpretations to support the trading of Korean Treasury Bonds (KTB) following the nation's inclusion in the FTSE World Government Bond Index.

The measures include introducing omnibus trading accounts, and enabling foreign investment service providers to consolidate orders linked to KTB settlement accounts, the FSC said last week.

The FSC clarified that foreign banks can sell KTBs they do not own and later buy them back from domestic banks, while domestic banks acting as dealers are similarly authorized. These changes are expected to streamline trading processes, align with the global operating model, and attract increased foreign investment, the release said.