The Korea Exchange announced on the 28th that it will start its own nighttime transactions for derivatives from the 9th of next month.
The nighttime transaction, which will be implemented from June 9th, will take place for 12 hours from 6 p.m. to 6 a.m. the next day. Existing Eurex-linked derivatives transactions will end after 4 a.m. on the 5th of the same month.
The transaction products include seven stock derivatives such as KOSPI 200 futures, mini KOSPI 200 futures, KOSDAQ 150 futures, KOSPI 200 options, mini KOSPI 200 options, KOSPI 200 weekly options, and KOSDAQ 150 options, as well as three FICC (fixed-income, currency, and commodity) derivatives, including U.S. dollar futures and 3-year and 10-year treasury futures.
The depositor can participate in regular and nighttime transactions with the same account. Nighttime transactions are considered the same trading day as the regular trading day that includes the end point of the nighttime transaction (6 a.m.). If the day corresponding to the start point of the nighttime transaction (6 p.m.) is a regular trading holiday, the nighttime transaction will also be suspended.
A representative from the exchange noted, “With the extension of trading hours, it will incorporate all trading hours of the U.S. stock market, making real-time risk management easier and improving convenience for investors.” They added, “The trading structure will also be simplified compared to existing Eurex-linked transactions, which is expected to reduce nighttime transaction participation costs.”