The Korea Exchange announced on the 3rd that it will revise its business rules to introduce its own night trading in the derivatives market in June.
Previously, the Korea Exchange held two pre-briefing sessions for all member firms to introduce night trading. Currently, it has completed the construction and development of the night trading computer system and is conducting a mock market operation for night trading.
A representative from the exchange noted, "The Korea Exchange operates night trading in conjunction with overseas exchanges, but there were some trading inconveniences as different accounts are used compared to regular trading (day trading) and participation is through Eurex members," explaining that it will build its own computer system. The trading system will be the same as that of regular trading.
The number of target products for Eurex-linked transactions will significantly increase from 5 to 10. The KOSPI 200 futures and options, U.S. dollar futures, and government bonds will be among the representative products to be listed.
Transaction hours will also be extended by 1 hour. Currently, transactions occur from 6 p.m. to 5 a.m. the following day, but starting in June, they will be available until 6 a.m., totaling 12 hours of trading.
The exchange emphasized that it will provide investors the opportunity to hedge (risk avoidance) in real time regarding overseas market issues during night hours, enhancing trading convenience and strengthening global competitiveness.
A representative from the Korea Exchange said, "In the future, we plan to introduce our own night trading in the derivatives market in early June this year, following feedback from stakeholders and market participants, and approval from the Financial Services Commission. Once the development of the computer system and the preparation situation of member firms are considered, we plan to announce the schedule again when it is confirmed."