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Eurex Mini-KOSPI Futures Now Tradable In Taiwan

  • Eurex Mini-KOSPI Futures currently the only contract to allow for after-hours trading and hedging of KOSPI
  • Strong volume increase in Eurex Mini-KOSPI Futures in Q2

Eurex Mini-KOSPI Futures have received approval from the Financial Supervisory Commission (FSC) of Taiwan. With this regulatory approval, Eurex expands its reach into Taiwan allowing both – buy side and sell side institutions – exposure to the Korean benchmark index KOSPI.

Carolyn Chou, President of Yuanta Futures, the leading Taiwanese futures firm: “We look forward to the new addition of a global derivatives contract and further collaboration with Eurex and relevant parties in promotion of Mini-KOSPI Futures in the Taiwan market. It will allow Yuanta and other Taiwanese FCMs to offer this contract to Taiwanese domestic investors.”

Mezhgan Qabool, Head of Market Development, and Head of Equity & Index Sales Asia at Eurex: “We have observed a healthy growing trend of trading volume of the product with a strong 145% growth in Q2 2020. Currently it is also the only KOSPI Futures tradable by global participants during night session of the KOSPI market.”

Nearly 24 hours trading and clearing

Due to the successful partnership between KRX and Eurex, Eurex KOSPI products connect Eurex participants and their customers world-wide directly to the Korean equity derivatives market. This enables market participants to react around the clock to events and movements in the Korean equity market.

Eurex and KRX started their partnership in August 2010 when KOSPI 200 Options, one of the most heavily traded options contracts in the world at that time, were first tradable at Eurex. This provided market participants with trading and hedging opportunities for KOSPI 200 positions during core European and North American trading hours.

In April 2016, Eurex and KRX jointly announced the extension of the cooperation by listing Mini-KOSPI 200 Futures on the existing Eurex / KRX Link (“Eurex Mini-KOSPI Futures”).

Strong volume increase in Q2

From 2019 to 2020, the average daily volume (ADV) in the Eurex Mini-KOSPI Futures has increased by around 70%. Continuing the growth momentum, a total of far over 300k contracts of Eurex Mini-KOSPI Futures were traded from January to July 2020, equivalent to a nearly sixfold increase compared to the same period in 2019.

In 2020, new global liquidity providers have joined the Eurex Mini-KOSPI Futures market. Further global market makers are currently in the process of onboarding.

 

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