Exchange to Start Eurex-Linked KOSPI 200 Futures Night Trading from the 22nd
[Asia Economy Reporter Song Hwajeong] The Korea Exchange (KRX) announced on the 15th that it plans to list KOSPI200 futures on the Eurex-linked night market in Germany starting on the 22nd.
The Eurex-linked KOSPI200 futures will be traded by listing 1-day maturity futures based on KOSPI200 futures on the Eurex market (Eurex Daily Futures on KOSPI200 Futures), trading from 18:00 Korean time to 05:00 the next day. After the night trading on the Eurex market ends, open interest will be transferred to the KRX regular KOSPI200 futures market through pre-market negotiated transactions (07:30 to 08:30). This trading method is the same as the existing Eurex-linked KOSPI200 options (launched in August 2010) and mini KOSPI200 futures (launched in November 2016) night trading.
The Exchange expects that by starting Eurex-linked KOSPI200 futures night trading, it will provide domestic and international investors with hedging and investment opportunities in KOSPI200 futures during nighttime hours, enabling continuous night trading following the regular market, which is expected to greatly improve the efficiency of the derivatives market. Additionally, price formation during nighttime hours is anticipated to positively contribute to price discovery and market formation in the next day’s regular market.
Son Byung-doo, Chairman of the Exchange, said, "With both KOSPI200 futures and KOSPI200 options, the representative stock index derivatives of KRX, being traded collectively through the Eurex-linked night market, investors can participate in the Korean market more conveniently and efficiently even at night. Furthermore, the partnership with Eurex, which has lasted for over 10 years, is expected to become even stronger."
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Michael Peters, CEO of Eurex, also stated, "The listing of KOSPI200 futures provides investors with special investment opportunities and risk management efficiency," adding, "Adding KOSPI200 futures to the KRX-Eurex linked market represents a significant advancement in the successful partnership between the two exchanges."
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