Korea Exchange and Eurex Receive Strong Support from Major Market Participants for Their Link
Launch of Eurex/KRX Link on track for starting date 30 August 2010
Eurex, Europe’s largest derivatives exchange, and the Korea Exchange (KRX), a leading Asian exchange, have received strong commitment and support from major market participants for the launch of their joint Eurex/KRX Link on 30 August. This Link comprises a cooperation to trade and clear options on Korea’s blue-chip index KOSPI 200 on Eurex during European and North American trading hours.
Currently, Eurex and KRX are jointly preparing the launch of daily futures on KOSPI 200 Options (the Eurex KOSPI Product) at Eurex and have been in an extensive member consultation process since the beginning of 2010. Fifteen KRX members have indicated that they will be ready to trade the Eurex KOSPI Product during the course of 2010, thereof eight from day one. On the Eurex side, another 16 members expressed interest to execute business for KRX members. Among the interested Eurex and KRX member firms are:
Daewoo Securities Co., Ltd.
Deutsche Bank AG
Deutsche Securities Korea Co.
Goldman Sachs International
Hana Daetoo Securites, Ltd.
Hyundai Securities Co., Ltd.
Korea Investment & Securities Co., Ltd.
Newedge Financial Hong Kong Limited, Seoul Branch
RBS Global Banking & Markets
Samsung Futures Inc.
Tong Yang Securities Inc.
ABN AMRO Clearing (vormals Fortis Clearing)
Additionally, IMC and Archelon have signaled their interest to actively quote as market makers from day one.
Through this cooperation, for the first time KOSPI 200 Options will be available after Korean trading hours worldwide. Both partners believe that the cooperation will increase the liquidity and efficiency of the Korean market. For Eurex customers, it will be an extension of the global Eurex product suite by offering access to the most liquid Asian index product.
The international derivatives exchange Eurex, jointly operated by Deutsche Börse AG and SIX Swiss Exchange, organizes markets globally. Eurex is home to the Euro zone interest rate and equity index benchmark derivatives. Eurex’s portfolio of markets includes International Securities Exchange, the world’s largest equity options exchange. The ECNs Eurex Repo and Eurex Bonds round out Eurex’s offering for repo and bond trading.
In addition, Eurex provides an automated and integrated clearing house, Eurex Clearing AG. Eurex’s global liquidity network comprises around 420 direct exchange members in 25 countries worldwide.
For more information about Eurex, visit www.eurexchange.com.
About Korea Exchange
Korea Exchange Inc. (KRX) is the main operator of cash and derivatives market in Korea and it is also responsible for clearing and settlement facilities in those respective markets. KRX provides its customers with a full access to both cash and derivatives markets, and clears and settles all transactions on its markets as a one-stop service. As a leading derivatives exchange in Asia, KRX offers diverse product group including individual equities, stock index, bond/interest rate, foreign currency and commodities. The KOSPI 200 Index is a market capitalization weighted index that consists of 200 blue-chip stocks listed on the KRX stock market. It represents the benchmark indicator of the Korean capital market.
The KOSPI 200 option is the most liquid exchange-traded derivatives product in the world in terms of trading volume. An average daily volume of 13.6 million contracts in Q1 2010 represents an increase of 25% over the same period in 2009.
Korea Exchange, KRX, KOSPI and KOSPI 200 are registered trademarks of Korea Exchange Inc. Further information about KRX and its products can be found at http://eng.krx.co.kr/.
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