On December 8th, 2014 (after KRX regular trading hours on December 8th), Korea Exchange (KRX) listed USD/KRW FX futures on CME Globex for its overnight trading session. KRX also listed back-dated contract months for existing KOSPI 200 futures up to the maturity of 3 years to meet the trading needs of longer term contracts.
CME Group and Korea Exchange (KRX) have a strategic partnership realized through a market linkage agreement that the selected KRX products are hosted on CME Globex for its overnight trading hours. Currently, the agreement enables KRX members to trade KOSPI 200 futures and USD/KRW FX futures during the overnight session on CME Globex via the KRX’s Unified System for Global Trading (USG). The trades executed on CME Globex will be combined with the trades of the next regular trading session for a single cycle of clearing and settlement.
The partnership provides:
For additional information: CME Group and KRX Partnership
Below is the overall on-boarding procedure for a customer who would like to trade the KRX products on CME Globex:
As opposed to order routing which is required to go through the USG system located in Korea, customers are able to leverage existing connectivity with CME Globex to subscribe to KRX market data on Globex. However, customers are required to be licensed with KRX before receiving KRX market data. Please contact your CME Global Account Manager for more information.
KRX, Korea Exchange Inc., established in January 2005 through the merger of the Korea Stock Exchange (KSE), the Korea Futures Exchange (KOFEX), the KOSDAQ Market, and the KOSDAQ Committee, is the sole exchange in the Republic of Korea. KRX operates the centralized securities and derivatives markets where stocks, bonds and derivatives are traded on a common platform called EXTURE+. KRX offers:
Its flagship KOSPI 200 futures and options are two of the world’s most liquid index contracts. Few products combine widespread retail liquidity with institutional interest so successfully. The futures contract is a world leader among stock index futures contracts, with a total 2009 volume of over 83 million contracts traded. Its counterpart, the KOSPI 200 option, has been the world’s most actively traded derivatives product for several years.