South Korea Shifts Dollar-Won Exchange Rate Benchmark to 4 p.m. TWAP from January 1, 2027

According to South Korea's Ministry of Economy and Finance, the Korean won-U.S. dollar exchange rate benchmark calculation method will transition from the existing MAR (morning weighted average rate) to 4 p.m. TWAP (time-weighted average price) starting January 1, 2027. The Seoul foreign exchange market also began 24-hour, five-day-a-week trading operations on July 6, 2026. Foreign exchange brokers, initially concerned about the potential loss of MAR-based trading volumes and commission revenue, now anticipate new trading patterns and derivative products emerging under the new TWAP framework, with market participants seeking design ideas for TWAP-based instruments.
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