Korea / Special Situations, Clepsydra Capital

Sanghyun Park

I investigate special situations in Korea.

Korea / Special Situations

Trading Suspension of KOSPI 200 Futures on CME Globex: Background & Impact

Confusions & Clarifications About the Scrapping of the 30% Cap in KOSPI 200

Updated Trading Approach of Samsung 1P/C to Reflect the New Situation

Thematic (Sector/Industry)

South korea Financials / Thematic (Sector/Industry)

The KRX will completely close the overnight futures market via the CME Globex on December 18, 2020.The two KRX products were trading on the CME Globex.<ol>
<li>KOSPI 200 Futures</li>
<li>USD/KRW Futures</li>
</ol>These two products were available for trade during the KRX overnight trading hours (from 6 PM to 5 AM in Seoul time).But the KOSPI 200 Futures already got trade-suspended on April 7 due to Samsung's 30+% index weighting in KOSPI 200.The US Commodity Futures Trading Commission withdraws the certification as eligible for trading in the US if the index weighting of a single constituent exceeds 30% for more than 45 days in the past three months.Thanks to Samsung's 30+% weighting, the CFTC now deemed the underlying index to KOSPI 200 Futures as a narrow-based stock index futures.<hr>Instead of restoring the 30% cap rule on KOSPI 200, the KRX has decided to completely part ways with the CME.As a result, the KRX-CME Globex link-up will close completely. That is, the remaining USD/KRW Futures are also to be gone as of December 18.<div class="content-highlight">The last overnight trading session of the US Dollar Futures will be from 18:00 of December 18 to 05:00 of December 19 (Seoul time).</div>

The KRX will completely close the overnight futures market via the CME Globex on December 18, 2020.The two KRX products were trading on the CME Globex.
KOSPI 200 Futures
USD/KRW Futures
These two products were available for trade during the KRX overnight trading hours (from 6 PM to 5 AM in Seoul time).But the KOSPI 200 Futures already got trade-suspended on April 7 due to Samsung's 30+% index weighting in KOSPI 200.The US Commodity Futures Trading Commission withdraws the certification as eligible for trading in the US if the index weighting of a single constituent exceeds 30% for more than 45 days in the past three months.Thanks to Samsung's 30+% weighting, the CFTC now deemed the underlying index to KOSPI 200 Futures as a narrow-based stock index futures.Instead of restoring the 30% cap rule on KOSPI 200, the KRX has decided to completely part ways with the CME.As a result, the KRX-CME Globex link-up will close completely. That is, the remaining USD/KRW Futures are also to be gone as of December 18.The last overnight trading session of the US Dollar Futures will be from 18:00 of December 18 to 05:00 of December 19 (Seoul time).

KRX, CME Globex 연계 종료. KOSPI 200 오버나잇 선물, 1Q20에 Eurex로 이전