Exchange to Extend Derivatives Night Trading by 1 Hour Starting June

The number of tradable products will increase to 10

The Korea Exchange's night derivatives trading market will switch to its own operating system starting in June. The night trading hours for the derivatives market will be extended by one hour, and the number of tradable products will increase to 10.

On the 3rd, the Korea Exchange announced a revision of the business regulations to introduce its own night trading system for the derivatives market.

Until now, the Korea Exchange has operated night trading in connection with Eurex, the largest derivatives exchange in Europe, based in Germany. However, there were inconveniences in trading, such as using different accounts from regular trading and having to participate through Eurex members.

Accordingly, the Korea Exchange plans to build its own IT system and switch to an 'independent night trading operation system' that applies the same trading system as regular (daytime) trading.

Additionally, the exchange plans to add five more products available for night trading in the derivatives market. In addition to the existing five Eurex-linked products, five new products will be introduced: KOSDAQ150 futures, Mini KOSPI200 options, KOSDAQ150 options, 3-year government bond futures, and 10-year government bond futures.

Previously, trading was possible from 6 p.m. to 5 a.m. (next day), but this will be extended by one hour to allow trading from 6 p.m. to 6 a.m. (next day), totaling 12 hours.

The Korea Exchange explained, "We provide investors with the opportunity to hedge in real time against overseas market events during night hours and have resolved investor inconveniences by applying the same trading procedures and methods as regular trading. Major competing exchanges have introduced and operate their own night trading for derivatives markets, which will also enhance the global competitiveness of our market."

The Korea Exchange plans to introduce its own night trading for the derivatives market in early June after gathering opinions from stakeholders and market participants and obtaining approval from the Financial Services Commission. Considering the development of the IT system and the preparation status of member firms, the specific introduction schedule will be announced again once finalized.

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