KRX and Eurex to Start Link in August 2010

 
Eurex to launch daily futures on KOSPI 200 Options on 30 August 2010/ KRX to extend global reach of its KOSPI 200 Options
10. March 2010

Eurex: Eurex, Europe’s largest derivatives exchange, and the Korea Exchange (KRX), a leading Asian exchange, today announced the start date of their Eurex/KRX Link, a product cooperation to trade and clear KOSPI 200 Options. In-soo Kim, Executive Director of KRX, and Michael Peters, member of the Eurex Executive Board, stated today that both exchanges are jointly preparing to launch daily futures on KOSPI 200 Options at Eurex on 30 August 2010. For the first time, KOSPI 200 Options will be available worldwide after Korean trading hours.

Mr. In-soo Kim said: “Our agreement with Eurex today is part of our strategy to extend the global reach of KRX markets and furthermore, it is in line with KRX’s vision of becoming a world-class premier exchange. Through this cooperation, we will provide round-the-clock trading opportunities in the KOSPI 200 Options market, which is already the most liquid exchange-traded derivative product in the world.”


Michael Peters said: “This cooperation is another major milestone in our strategy to extend our global product suite by offering our members access to existing liquidity pools. The listing at Eurex of the most heavily traded options contract in the world will enable international investors and traders to access the KOSPI 200 Options market during core European trading hours.”


Both partners believe that the cooperation will increase the liquidity and efficiency of the Korean market. This newly extended market for KOSPI 200 Options will provide existing market participants trading and hedging opportunities for KRX positions after Korean trading hours and the potential to take positions as the global market fluctuates.

About Eurex

The international derivatives exchange Eurex, jointly operated by Deutsche Börse AG and SIX Swiss Exchange, organizes markets globally. Eurex is home to the Euro zone interest rate and equity index benchmark derivatives. Eurex’s portfolio of markets includes International Securities Exchange, the world’s largest equity options exchange. The ECNs Eurex Repo and Eurex Bonds round out Eurex’s offering for repo and bond trading.

In addition, Eurex provides an automated and integrated clearing house, Eurex Clearing AG. Eurex’s global liquidity network comprises around 420 direct exchange members in 25 countries worldwide.

About Korea Exchange

Korea Exchange Inc. (KRX) is the main operator of cash and derivatives market in Korea and it is also responsible for clearing and settlement facilities in those respective markets. KRX provides its customers with a full access to both cash and derivatives markets, and clears and settles all transactions on its markets as a one-stop service. As a leading derivatives exchange in Asia, KRX offers diverse product group including individual equities, stock index, bond/interest rate, foreign currency and commodities. The KOSPI 200 Index is a market capitalization weighted index that consists of 200 blue-chip stocks listed on the KRX stock market. It represents the benchmark indicator of the Korean capital market.

According to the half year statistics of 2009 compiled by Futures Industry Association, KOSPI 200 option is the most liquid exchange-traded derivatives product in the world in terms of trading volume with 1.4 billion contracts.

Korea Exchange, KRX, KOSPI and KOSPI 200 are registered trademarks of Korea Exchange Inc.