Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

<ul>
<li>It would be prudent to anticipate that a considerable portion of these 636 companies will indeed adjust their dividend record dates, effective from this year's year-end dividends.</li>
<li>One notable setup gaining attention is calendar spread trading for the KOSPI 200 futures in anticipation of an upward trend in the KOSPI 200 futures market towards the year's end.</li>
<li>This entails buying the near-month and selling the far-month, liquidating when the price difference reverts. Traders pay attention to potential far-month divergence due to the shift in dividend record dates.</li>
</ul>


It would be prudent to anticipate that a considerable portion of these 636 companies will indeed adjust their dividend record dates, effective from this year's year-end dividends.
One notable setup gaining attention is calendar spread trading for the KOSPI 200 futures in anticipation of an upward trend in the KOSPI 200 futures market towards the year's end.
This entails buying the near-month and selling the far-month, liquidating when the price difference reverts. Traders pay attention to potential far-month divergence due to the shift in dividend record dates.


KOSPI 200 Futures Calendar Spread Trading: Latest on Year-End Dividend Record Date Changes

<ul>
<li>The pivotal question now is the number of these companies that will effectively defer their year-end ex-dividend date to April next year.</li>
<li>The most reliable way to accurately confirm this would be to check how many of them will publicly announce the dividend reference date two weeks before the December year-end deadline.</li>
<li>This will serve as the most critical indicator in determining whether this year's year-end flow trading event, the most significant in Korea, will recur.</li>
</ul>


The pivotal question now is the number of these companies that will effectively defer their year-end ex-dividend date to April next year.
The most reliable way to accurately confirm this would be to check how many of them will publicly announce the dividend reference date two weeks before the December year-end deadline.
This will serve as the most critical indicator in determining whether this year's year-end flow trading event, the most significant in Korea, will recur.


Key Points to Consider at This Stage Regarding the Year-End Ex-Dividend Play

<ul>
<li>It is highly probable that SP trading will increase after July 31st, as this will provide a more conducive environment for the seamless rollover of large positions.</li>
<li>Considering the actual impact on the market, we may have to pay more attention to the potential surge in trading volume for single-stock futures SP.</li>
<li>We see a rise in aggressive position setups in event trading, including rights offerings. This may lead to a more substantial price impact by increasing the intensity of such trading.</li>
</ul>


It is highly probable that SP trading will increase after July 31st, as this will provide a more conducive environment for the seamless rollover of large positions.
Considering the actual impact on the market, we may have to pay more attention to the potential surge in trading volume for single-stock futures SP.
We see a rise in aggressive position setups in event trading, including rights offerings. This may lead to a more substantial price impact by increasing the intensity of such trading.


Impact of Allowing Negotiated Block Trades for Eight Futures Spreads, Incl. SSF SP

Mini Kospi 200 Futures (KMS1 INDEX)

KOSPI 200 Futures Calendar Spread Trading: Latest on Year-End Dividend Record Date Changes

This post explores the potential for calendar spread trading on KOSPI 200 Futures, providing the latest updates on changes to year-end dividend...

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Key Points to Consider at This Stage Regarding the Year-End Ex-Dividend Play

This post discusses key points we should know at this point concerning the year-end ex-dividend play, a recurring phenomenon over the past decade.

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Impact of Allowing Negotiated Block Trades for Eight Futures Spreads, Incl. SSF SP

This post assesses the potential market impact of allowing negotiated block trades for eight futures spreads, including single-stock futures SP.

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