Korea Exchange to List Additional Stock Derivatives...Improves KOSPI 200 Option Strike Price Setting Method

The Korea Exchange announced on the 11th that it plans to list additional single stock futures and options, as well as ETF futures, and to improve related systems such as the method for setting strike prices for options based on the KOSPI 200 index.

On the 10th, dealers are working in the dealing room at the headquarters of Hana Bank in Jung-gu, Seoul. Photo by Jinhyung Kang

The additional listing of single stock futures and options aims to expand risk management tools by continuously supplying derivatives based on underlying stocks, and to provide new investment opportunities. In order to enhance the risk management function of the KOSDAQ market, the criteria for selecting underlying stocks will be changed, and market benchmark index rebalancing will be reflected.

By additionally listing the 'TIGER Semiconductor TOP10 ETF Futures,' the exchange will provide risk management tools for the domestic semiconductor sector, a leading industry in Korea, and support the efficient management of related products such as leveraged ETFs.

The range for setting strike prices for options based on the KOSPI 200 index will be expanded to 120 points above and below the at-the-money (ATM) price. Through this, the number of tradable option strike prices will increase, enabling the exchange to meet diverse investor demand, including investments in deep out-of-the-money (OTM) options.

To improve the stability of night trading (which begins at 6 p.m.), the Korea Exchange will move up the deadline for confirming open interest and reporting accounts by 10 minutes after the close of the regular trading session.

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