Eurex and Korea Trade develop around-the-clock ecosystem for KOSPI derivatives

Eurex and the Korea Trade KRX will develop their tradable product vary with Weekly Choices on the Korean benchmark index KOSPI 200. With weekly expirations on one of many world’s most closely traded index choices contracts, the 2 exchanges are increasing their around-the-clock ecosystem for KOSPI derivatives. Thereby, each exchanges emphasize as soon as once more their decade-long dedication to connecting markets globally. 

Each exchanges introduced right now that buying and selling within the new contract will begin within the first quarter of 2022. The launch is of excessive strategic significance for KRX and Eurex. KOSPI 200 Choices are among the many three most closely change traded index contracts globally. A mean every day turnover within the Weekly Choices of over 1 million contracts at KRX exhibits the excessive demand for weekly expiries. The power to commerce them exterior the Korean buying and selling hours provides traders higher flexibility and precision to customise short-term danger exposures within the Korean market.

Eurex is presently the one venue the place worldwide traders can entry KOSPI derivatives exterior the Korean buying and selling hours and through European and North American buying and selling hours. 

Sohn Byungdoo, Chairman and CEO of KRX: “KOSPI 200 Weekly Choices listed on the KRX derivatives market since September 2019 are one of the vital actively traded derivatives merchandise on KRX. I’m more than happy that we’ll quickly add KOSPI 200 Weekly Choices on the KRX-Eurex hyperlink to satisfy traders’ wants for around-the-clock buying and selling. We stay up for the extra liquidity it will add to the present ecosystem of our joint hyperlink.”

Michael Peters, CEO of Eurex: “South Korea is without doubt one of the ten largest economies on this planet. Subsequently, we’re proud to additional develop our ecosystem for Korean derivatives along with our associate KRX. We thus allow traders, whether or not in Asia, the USA or Europe, to handle their investments on this extremely essential market not solely across the clock, but in addition on very short-term publicity.”

The upcoming product itemizing is the most recent step within the enlargement of the associate exchanges’ hyperlink which began in August 2010. The brand new Weekly Choices complement the common KOSPI 200 Choices, of which over 277 million contracts have been traded on the hyperlink since 2010. Additional merchandise tradable on the hyperlink are KOSPI 200 Futures, Mini-KOSPI 200 Futures, and the just lately launched USD/KRW Futures. It’s anticipated that CFTC approval will probably be granted for the KOSPI 200 Futures contracts on the Eurex/KRX hyperlink from Q1 2022 to permit entry for U.S. traders. 

About Eurex

Eurex is a part of Deutsche Börse Group and {the marketplace} of selection for the worldwide derivatives group. The biggest derivatives change by open curiosity globally, Eurex delivers innovation and excellence throughout the monetary business’s worth spectrum. The change affords a broad vary of worldwide benchmark merchandise and operates one of the vital liquid fastened earnings markets on this planet. Working with prospects, regulators and different stakeholders to facilitate an environment friendly and various market, Eurex offers most advantages to all individuals by delivering security and integrity. Greater than 350 Eurex members in 33 international locations, and near 7,000 registered merchants, are linked. The buying and selling quantity at Eurex exceeds 1.9 billion contracts a 12 months.

About KRX

Korea Trade Inc. (KRX) is the principle operator of money and derivatives maket in Korea and additionally it is chargeable for clearing and settlement services in these respective markets. KRX offers its prospects with a full entry to each money and derivatives markets, and clears and settles all transactions on its markets as a one-stop service. As a number one derivatives change in Asia, KRX affords various product group together with particular person equities, inventory index, bond/rate of interest, overseas forex and commodities. The KOSPI200 Index is a market capitalization weighted index that consists of 200 blue-chip shares listed on the KRX inventory market. It represents the benchmark indicator of the Korean capital market.