Exchange to Expand Early Opening of Derivatives on 4th Next Month... Listing of Value-Up Index Futures

The Korea Exchange announced on the 24th that it plans to move the opening time of stock derivatives trading from 9:00 AM to 8:45 AM starting next month on the 4th. On the same day, the listing of the Korea Value-Up Index Futures is also scheduled to take place.

Korea Exchange, Yeouido, Seoul. Photo by Jinhyung Kang aymsdream@

On the 22nd, the Exchange announced a revision to the detailed enforcement rules of the derivatives market regulations reflecting this change, and after collecting opinions, it plans to implement it on the 4th of next month. Since the early opening of representative stock index derivatives such as KOSPI 200 futures and options, which have been in effect since July last year, has been positively evaluated, the Exchange plans to expand the early opening to all stock derivatives.

While maintaining the same order acceptance time, the opening time will be adjusted so that the single price order acceptance time for the opening price will be shortened from 8:30 AM - 9:00 AM (30 minutes) to 8:30 AM - 8:45 AM (15 minutes). The newly included products for early opening are sector index futures, KOSDAQ Global futures, and stock futures and options.

Euro Stoxx 50 futures, which are overseas stock products, will be excluded from the early opening, and derivatives related to interest rates, bonds, currencies, and general commodities, excluding stock-related derivatives, will be considered for early opening in the future through consultations with the industry and relevant authorities.

The Exchange expects that the additional early opening will enable early price discovery for detailed units of the stock market such as sectors and individual stocks, which could further reduce volatility at the start of the stock market opening. The revised enforcement rules also include a refinement in the theoretical price calculation of stock derivatives by changing the interest rate variable from the "CD rate (91 days) announced by the Korea Financial Investment Association on the afternoon of two business days prior" to the "linear interpolated interest rate calculated by the Korea Exchange in the morning of the previous day corresponding to the remaining maturity of each item," thereby enhancing price accuracy.

Additionally, the listing of Korea Value-Up Index futures is being promoted. A representative from the Exchange stated, "We are promoting the listing of Korea Value-Up Index futures to actively support the corporate value-up program aimed at enhancing corporate value through the derivatives market," adding, "The product will be designed similarly to existing sector index futures specifications, but trading multipliers and price tick sizes will be set to facilitate trading by institutional investors."

This content was produced with the assistance of AI translation services.