Seoul-based Korea First Bank, with assets totaling over USD32.2 billion, plans to set up an interest rate derivatives trading book in the second half of this year. Jin Hang Lee, treasurer, said while the bank currently offers interest rate derivatives to its clients, these are hedged back-to-back transactions, and it wants to establish a proprietary book to trade swaps and options. "We'll start with simple swaps at first and then move to the next level," said Lee. He expects the board of directors to rubber stamp the plans by the second quarter. The existing trading team will handle the duties but Lee said as the operation grows he will consider adding more traders.
