Dear Clearing Member,
With this newsflash, Eurex Clearing would like to provide more detailed information regarding the requirements for clearing of the new Daily Futures on KOSPI 200 Weekly Options (OKW1, OKW3, OKW4 and OKW5) to be introduced on the Eurex/KRX Link, as announced in Eurex circular 006/2022 and Eurex Clearing circular 001/22.
The effective launch date for these new products is 28 March 2022. Simulation environment has been available since 25 February 2022.
New Eurex KOSPI products being added to Eurex/KRX Link
These new products will be available on the Eurex/KRX Link following the existing trading mechanism and requirements. These new daily expiring futures at Eurex are designed to be cash settled in South Korean won (KRW) in the same fashion as the existing Eurex KOSPI products:
Eurex KRX products currently available on Eurex/KRX Link
The requirement for Clearing Members is the same as for clearing the existing Eurex KOSPI products, i.e. having a KRW payment infrastructure ready prior to activation for clearing the KRW capacity.
To support clearing activities, please find below additional guidance:
Existing Eurex Clearing Members already clearing existing KOSPI products
There is no new requirement for Clearing Members as they can use the existing KRW payment bank and have the same clearing procedure as the current products.
New products will be assigned to the same capacity as the currently listed monthly options (i.e. Cash KRW) and the existing Clearing Members who have been assigned to this capacity can automatically clear the new products (i.e. no additional legal Info and re-signing of forms required).
Existing Eurex Clearing Members who wish to start clearing KOSPI products
It is required to set up an account in KRW at one of the designated payment banks in Korea in order to settle cash obligations. For this, please follow the existing process and complete the relevant form “Application for Set-up/Deletion/Change of Collateral Accounts and Clearer Cash Accounts” provided by your Clearing Key Account Manager. There is no additional technical implementation required on the clearing side.
We encourage Clearing Members and Independent Software Vendors to participate in simulation in order to prepare for the launch of these new products. The new Daily Futures on KOSPI 200 Weekly Options are already available in simulation environment. In addition, Korea Exchange (KRX) supports the participating Eurex and KRX Members to simulate the positions transfer process at KRX during the simulation process.
Please also refer to the Eurex/KRX Member Readiness Guide available on the Eurex Clearing website under the following path: Support > Initiatives & Releases > Product Readiness > Eurex Weekly KOSPI Options Support > Supporting Documents.
Learn now more about Eurex Weekly KOSPI Options Support on our dedicated initiative pages under the following links: Support > Initiatives & Releases > Product Readiness > Eurex Weekly KOSPI Options Support. System documentation, circulars, timeline and much more information will be available there for you.
If you have any questions or comments, please send an e-mail to: firstname.lastname@example.org.
Your Client Services Team
All Clearing Members, Basic Clearing Members, Disclosed Direct Clients of Eurex Clearing AG and vendors
Front Office/Trading, Middle + Back Office, IT/System Administration
Support > Initiatives & Releases > Product Readiness > Eurex Weekly KOSPI Options Support