News Center
Dec 02, 2016

Eurex Group

Monthly Report - Eurex boosts capital efficiencies for KOSPI 200 investors

  • Successful cooperation with KRX
  • Record volumes in KOSPI 200 Options

Eurex – Europe’s largest derivatives exchange – has allowed investors in Korea’s equity benchmark KOSPI 200 Index to more easily hedge their options exposures, by using Eurex Mini KOSPI-200-Futures as a hedging tool via the same trading platform. “This may also result in capital efficiencies, since market investors only need one clearing house”, said Michael Peters, Deputy CEO of Eurex, when presenting the monthly derivatives trading statistics of Deutsche Börse Group (see annex).

The Eurex KOSPI products mirror the contract specifications of the KOSPI 200 Options and Mini KOSPI-200-Futures of Korean Exchange KRX. The contracts are among the most liquid index derivatives in the world and not only attractive for Korean investors, because they represent a global benchmark.

Eurex began its cooperation with KRX in 2010, launching a link with the exchange which allowed after-hours trading in KOSPI 200 Options. KOSPI 200 Options became tradable during the main trading hours in Europe and North America on Eurex. As of November 28 this has also been true of Mini KOSPI-200-Futures. Twenty-four hours trading not only meets the trading needs of market participants, but is also likely to attract more foreign and institutional investors to the Korean market.

Eurex KOSPI 200 Options saw daily average trading volumes of over 90,000 contracts in the first three quarters of 2016, corresponding to 6.4 percent of official daily trading on KRX itself.

“This is a very good percentage for trading in a different time zone. It shows that customers appreciate our cooperation products because they allow them to react to price changes in correlated assets in the European and North American markets”, Peters added.

On 9 November, 317,399 KOSPI 200 Options contracts have been traded on Eurex, the highest daily volume seen so far in 2016.

Media contacts:

Irmgard Thiessen
Spokesperson for Eurex, Eurex Clearing and Eurex Repo

Mergenthalerallee 61
65760 Eschborn

T +49-(0) 69-2 11-1 59-11

irmgard.thiessen@​deutsche-​boerse.com

Christina Hudelmayer
Spokesperson for Clients, Products & Core Markets division

Mergenthalerallee 61
65760 Eschborn

T +49-(0) 69- 2 11-1 78 54

christina.hudelmayer@deutsche-boerse.com

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