Woori Bank’s London trading centre has concluded its first derivatives transaction with a local company. It also launched a local operating system that provides a loan and an interest rate swap together and hedges the related risk in London financial markets in-house.

Woori Bank said on Monday it concluded its first derivatives transaction with a local company at its London trading centre on Sept. 29.

The London trading centre worked with the bank’s London branch to provide a 70 million-pound loan to the local company and simultaneously execute an interest rate swap transaction of the same size.

Woori Bank hedged risks arising from the transaction directly in London financial markets using its own trading book, called a "Book". Woori Bank said it was the first among South Korea’s major commercial banks to hedge, using its own book, a derivatives transaction concluded with a local company in London.

For that purpose, it upgraded its headquarters’ integrated trading system into a global operating model and built it so it can be used in London. It also secured several global banks as counterparties, creating a foundation to directly tap local market liquidity and quotations.

Woori Bank plans to expand its local derivatives services in London starting with this transaction and diversify counterparties.

Lee Seong-min (이성민), head of Woori Bank’s London trading centre, said, "As a hub that connects abundant liquidity in the local market with corporate financial demand, we will enhance quotation competitiveness and traders’ market response capabilities."