Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Cross Asset Strategy

<ul>
<li>On 27 November, the Korean Financial Services Commission (FSC) finally announced that it has completely abolished the restrictions on the foreigners opening integrated accounts to trade Korean stocks.</li>
<li>This amendment will start to take effect on 2 January 2026.</li>
<li><em><strong>What this means is that major global trading platforms such as IBKR will most likely be allowed to trade Korean stocks without any major restrictions sometime starting 1H 2026. </strong></em></li>
</ul>


On 27 November, the Korean Financial Services Commission (FSC) finally announced that it has completely abolished the restrictions on the foreigners opening integrated accounts to trade Korean stocks.
This amendment will start to take effect on 2 January 2026.
What this means is that major global trading platforms such as IBKR will most likely be allowed to trade Korean stocks without any major restrictions sometime starting 1H 2026. 


Foreigners Integrated Accounts Starting in January 2026: Impact on IBKR & Foreign Trading Platforms

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

iShares MSCI China ETF / Technical Analysis

<ul>
<li>We remain near-term bullish since our 4/22/25 Compass, and our intermediate-term outlook remains bullish as well (as of our 5/14/25 Compass).</li>
<li>Short-Term supports on the SPX include the 20-day MA (currently 6233), 6200, 6100-6150, and 6028-6059, with additional supports at 5804-5854 and 5700-5785. Buy pullbacks to these areas.</li>
<li>SPX has not closed below its 20-day MA for two months, but even when it does, all we would expect to happen is for a new, less-steep uptrend to form.</li>
</ul>


We remain near-term bullish since our 4/22/25 Compass, and our intermediate-term outlook remains bullish as well (as of our 5/14/25 Compass).
Short-Term supports on the SPX include the 20-day MA (currently 6233), 6200, 6100-6150, and 6028-6059, with additional supports at 5804-5854 and 5700-5785. Buy pullbacks to these areas.
SPX has not closed below its 20-day MA for two months, but even when it does, all we would expect to happen is for a new, less-steep uptrend to form.


More Breakouts and Risk-On Developments; Monitoring Rotations: Miners, Retail, Lithium, China

<ul>
<li>In this insight, we discuss Korean government's new task force for Korea to be included in a major global index. </li>
<li>Prior to this major market moving event, there will be some important signals. </li>
<li>One of the most important signals could be major global securities companies (such as IBKR/TD Ameritrade) allowing trading of Korean stocks to customers world-wide. </li>
</ul>


In this insight, we discuss Korean government's new task force for Korea to be included in a major global index. 
Prior to this major market moving event, there will be some important signals. 
One of the most important signals could be major global securities companies (such as IBKR/TD Ameritrade) allowing trading of Korean stocks to customers world-wide. 


Korean Government's New Task Force for Inclusion in a Major Global Index + IBKR Korea Trading Signal

<ul>
<li>FSS announced that it will relax the requirements for opening a foreign integrated account to allow foreigners to more easily invest in Korean stocks through overseas local securities firms. </li>
<li>On 11 March, Interactive Brokers announced that it invested 15 billion won in Next Securities. So far, IBKR has not formally announced that it will allow trading of Korean stocks.</li>
<li>We expect IBKR to allow trading of Korean stocks in 2025, mainly due to its investment in Next Securities and FSS's announcement today on relaxation of opening foreign omnibus accounts. </li>
</ul>


FSS announced that it will relax the requirements for opening a foreign integrated account to allow foreigners to more easily invest in Korean stocks through overseas local securities firms. 
On 11 March, Interactive Brokers announced that it invested 15 billion won in Next Securities. So far, IBKR has not formally announced that it will allow trading of Korean stocks.
We expect IBKR to allow trading of Korean stocks in 2025, mainly due to its investment in Next Securities and FSS's announcement today on relaxation of opening foreign omnibus accounts. 


FSS to Allow Foreigners to Invest in Korean Stocks Through Overseas Local Securities Firms

<ul>
<li>The S&amp;P 500 (SPX) is back to test YTD highs and important resistance in the 5670-5783 range. This is an important target/resistance area we have discussed for weeks.</li>
<li>Using the 2007 SPX topping analog suggests a 2% or less move above the prior all-time high set in July at 5670 before topping, which gives the 5783 number.</li>
<li>As long as SPX does not have a weekly close above 5783 we continue to recommend reducing risk and shifting to defensives,and this is the ideal time to do so.</li>
</ul>


The S&amp;P 500 (SPX) is back to test YTD highs and important resistance in the 5670-5783 range. This is an important target/resistance area we have discussed for weeks.
Using the 2007 SPX topping analog suggests a 2% or less move above the prior all-time high set in July at 5670 before topping, which gives the 5783 number.
As long as SPX does not have a weekly close above 5783 we continue to recommend reducing risk and shifting to defensives,and this is the ideal time to do so.


SPX Testing Resistance as Rate Cut Cycle Begins; SPX 5670-5783 Is Resistance, 2007 Analog on Track

United States

Interactive Brokers Group, Inc. is an automated global electronic market maker and broker specializing in routing orders and executing and processing trades in securities, futures, and foreign exchange instruments.

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Interactive Brokers Group, Inc (IBKR US)

Foreigners Integrated Accounts Starting in January 2026: Impact on IBKR & Foreign Trading Platforms

FSC abolished restrictions on foreigners opening integrated accounts to trade Korean stocks, effective January 2, 2026. IBKR/others are expected to...

Douglas Kim

More Breakouts and Risk-On Developments; Monitoring Rotations: Miners, Retail, Lithium, China

More Breakouts and Risk-On Developments; Still Bullish $SPX $QQQ $IWM. Monitoring Rotations: Utilities $XLU, Real Estate $XLRE, Miners $XME $GDX,...

Vermilion Research

Korean Government's New Task Force for Inclusion in a Major Global Index + IBKR Korea Trading Signal

In this insight, we discuss Korean government's new task force for Korea to be included in a major global index. Prior to this major market moving...

Douglas Kim

FSS to Allow Foreigners to Invest in Korean Stocks Through Overseas Local Securities Firms

FSS announced today that it will relax the requirements for opening a foreign integrated account to allow foreigners to more easily invest in...

Douglas Kim

SPX Testing Resistance as Rate Cut Cycle Begins; SPX 5670-5783 Is Resistance, 2007 Analog on Track

$SPX Testing Resistance as Rate Cut Cycle Begins; SPX 5670-5783 is Resistance, 2007 Analog on Track if Below 5783. Still Neutral, prefer to sell...

Vermilion Research

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