Korea / Special Situations, Clepsydra Capital

Sanghyun Park

I investigate special situations in Korea.

Korea / Special Situations

Is This Swing Trading Timing for Samsung?

Samsung 1P Discount Now at an All-Time Low: Why & What Next

Samsung 1P Discount: Biologics/Elec Equity Swap Dynamics

Removal of 30% Limit on a Single Stock in ETFs: Impact on Samsung 30% Cap in KOSPI 200

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

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

SEC Critical Trendline Support Breach and Sell Signal

Event-Driven

It is now official that KOSPI 200 Futures listed on CME Globex gets suspended indefinitely. The two KRX products are currently on CME Globex. These are KOSPI 200 Futures and USD/KRW Futures. They are available during KRX overnight trading hours (from 6 PM to 5 AM in Seoul time). It will be effective as of tonight (April 7). That is, KOSPI 200 Futures traders are unable to trade on CME Globex starting tonight.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/126/957/original/2.png?1586240905" class="editor-image img-responsive" data-smartkarma-image-id="126957"></figure>Why?It is because of Samsung's 30+% index weighting in KOSPI 200. If the index weighting of a single constituent exceeds 30% for more than 45 days in the past three months, the US Commodity Futures Trading Commission withdraws the certification as eligible for trading in the US.So, the CFTC now deems the underlying index to KOSPI 200 Futures as a narrow-based stock index futures (which is the opposite of a broad-based stock index). That is, the sale of KOSPI 200 Futures contracts to US persons will now be subject to both CFTC and SEC (Securities and Exchange Commission) requirements. Under the applicable laws, a narrow-based security index includes an index in which a single constituent comprises more than 30 percent of the index's weighting.

It is now official that KOSPI 200 Futures listed on CME Globex gets suspended indefinitely. The two KRX products are currently on CME Globex. These are KOSPI 200 Futures and USD/KRW Futures. They are available during KRX overnight trading hours (from 6 PM to 5 AM in Seoul time). It will be effective as of tonight (April 7). That is, KOSPI 200 Futures traders are unable to trade on CME Globex starting tonight.Why?It is because of Samsung's 30+% index weighting in KOSPI 200. If the index weighting of a single constituent exceeds 30% for more than 45 days in the past three months, the US Commodity Futures Trading Commission withdraws the certification as eligible for trading in the US.So, the CFTC now deems the underlying index to KOSPI 200 Futures as a narrow-based stock index futures (which is the opposite of a broad-based stock index). That is, the sale of KOSPI 200 Futures contracts to US persons will now be subject to both CFTC and SEC (Securities and Exchange Commission) requirements. Under the applicable laws, a narrow-based security index includes an index in which a single constituent comprises more than 30 percent of the index's weighting.

CME Globex에서 KOSPI 200 선물 거래 중단: 배경 및 영향

Samsung Electronics

CME Globex에서 KOSPI 200 선물 거래 중단: 배경 및 영향