CME Group, KRX Announce After-hours Access to KOSPI 200 Futures on CME Globex
CME Group, the world’s largest and most diverse derivatives marketplace, and the Korea Exchange Inc. (KRX), a premier capital marketplace for Northeast Asia, launched November 16 the first first phase of their program to provide customers with after-hours access to KOSPI 200 Futures hosted on the CME Globex electronic trading platform by routing orders through KRX Unified System for Global (USG) trading.
In addition, Chicago Mercantile Exchange (CME) and KRX also indicated their commitment to pursue a potential bi-directional order routing initiative, based on the model CME Group has implemented successfully with BM&FBOVESPA in Brazil. This initiative is subject to regulatory approvals. Building on CME Group’s track record of successful relationships, volume routed through CME Globex now accounts for more than 25 percent of trading activity in BM&FBOVESPA’s stock index futures contracts.
“The launch of after-hours trading for KOSPI 200 Futures on CME Globex is a significant achievement, and we are proud to partner with KRX to deliver this advancement in Korean capital markets,” said Phupinder Gill, CME Group President. “Through this initiative, we will work with KRX to create opportunities to expand access and increase distribution of both exchange’s products globally. Our partnership with KRX is another example of CME Group’s commitment to Asia and to expanding our services to customers around the world.”
“This after-hours trading for KOSPI 200 Futures on CME Globex is a big breakthrough for the global expansion of the KRX derivatives market,” said Chang-ho Lee, Acting Chairman and CEO of KRX. “In this regard, I’m very glad that we can provide the enhanced tool of 24-hour risk management to customers and the opportunity of a new revenue source to members.”
As phase one of this multi-phase program is completed, KRX clearing members will have access to the KOSPI 200 Futures market via the USG. Direct access through global CME Globex connections is subject to regulatory approvals.
The KOSPI 200 comprises the 200 largest publicly-traded companies on the Korean Exchange. This index is seen as a barometer of the overall movements of the Korean stock market, and is used to benchmark the performance of investors and funds in the Korean market. According to the first half of 2009 statistics compiled by Futures Industry Association, KOSPI 200 Futures is the 6th most traded index futures in the world in terms of trading volume, with 43.9 million contracts.