Korea Exchange (KRX) and Eurex will expand their tradable product range with Weekly Options on the KOSPI 200 Korean benchmark index. With weekly expirations on one of the world’s most heavily traded index options contracts, the two exchanges are expanding their around-the-clock ecosystem for KOSPI derivatives.
In doing so, both exchanges emphasize once again their decade-long commitment to connecting markets globally.
Both exchanges announced on November 17 that trading in the new contract will start in the first quarter of 2022. The launch is of high strategic importance for KRX and Eurex.
KOSPI 200 Options are among the three most heavily exchange traded index contracts globally.
With the Weekly Options trading over one million contracts daily on the KRX, further liquidity will be added to the product suite of the joint link, creating additional hedging and trading opportunities for investors globally.
Weekly expiries will especially provide investors with greater flexibility and precision to customize risk around overnight events and movements in the Korean stock market.
Eurex is the only venue where international investors can access KOSPI derivatives outside Korean trading hours and during European and North American trading hours.
“KOSPI 200 Weekly Options listed on the KRX derivatives market since September 2019 is one of the most actively traded derivatives products on KRX,” said Sohn Byung-doo, Chairman and CEO of KRX.
“I am very pleased that we will soon add KOSPI 200 Weekly Options on the KRX-Eurex link to meet investors’ needs for around-the-clock trading. We look forward to the additional liquidity this will add to the existing eco-system of our joint link.”
“South Korea is one of the 10 largest economies in the world,” said Michael Peters, CEO of Eurex.
“Therefore, we are proud to further expand our ecosystem for Korean derivatives together with KRX. We thus enable investors, whether in Asia, the USA or Europe, to manage their exposure to this highly important market not only around the clock, but also on very short term.”
In the meantime, KRX confirmed a constituent change to the KOSPI 200, KOSDAQ 150 and KRX 300 following an Index Committee meeting held on November 23, 2021.
The meeting concluded that the reconstitution will result in six companies changed in the KOSPI 200, 15 in the KOSDAQ 150 and 26 in the KRX 300.
Reconstituted indices will go into effect on December 10, 2021. In the KOSPI 200, six constituents will be changed, down from 7 at the previous reconstitution in June 2021.
Notes
SK Square, a new spun-off company, will be added to the index on the next trading day of its relisting, which will be November 30, and remain on the list after the planned reconstitution on December 10.
As Kakao Pay satisfies the requirements for the fast entry rule, it will replace Lotte Himart at the reconstitution on December 10. A reconstituted KOSPI 200 is expected to represent the KOSPI market well, reaching a market capitalization coverage ratio of 90.5 percent.
As for the KOSDAQ 150, 15 new constituents will replace 15 old ones. A reconstituted KOSDAQ 150 is expected to have a market capitalization coverage ratio of 50.1 percent.
Twenty-six constituents will make their debuts in the KRX 300. A new KRX 300 is expected to appropriately represent the KOSPI and KOSDAQ market, having a market capitalization coverage of 82.8 percent.
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