Korea Exchange (KRX) said on Jan. 26 that it will suspend derivatives night trading that had been scheduled to be held from 6 p.m. on Feb. 13 to 6 a.m. on the 14th.
Because derivatives night trading is aggregated with and cleared alongside regular trading, concerns have been raised that if trading is conducted right before a long holiday, participants' night trades could be exposed to risk for an extended period.
An exchange official said, "Because sharp price swings during that period could increase the burden of risk management for market participants, we decided to suspend night trading on the day before the holiday," and noted, "There is also a possibility that client risk could surge due to margin calls, offsetting transactions, and a lack of liquidity."
Meanwhile, major Asian exchanges, including KRX, are implementing special market measures such as suspending night trading on the day before long holidays. KRX also suspended night trading on Oct. 2, the day before the Chuseok holiday, last year.