Dual futures trading systems to be merged into single trading system.
Under the FSC proposal, tentatively set to be implemented by end of June this year, the KOSPI futures trading system is to be adopted at the Korea Exchange for all futures and options trading as it already effectively handles nearly all of the futures and options trading, including KOSPI 200 futures, KOSPI 200 options, Star index futures, and stock options. The KOSPI futures trading system also has the advantages of familiarity to investors, significant cost-effectiveness, and locally developed technologies.
Key changes under integrated futures trading at the Korea Exchange Current trading system Proposed integrated KTB futures KOSPI futures trading trading trading system Trading 9:00 a.m.- 9:00 a.m.- 9:00 a.m.- hours 3:00 p.m. 3:15 p.m. 3:15 p.m. Types of Limit order Limit order Limit order orders Market order Market order Market order Conditional Conditional limit order limit order Best limit Best limit order order Closing/ Continuous Periodic call Periodic call settlement auction for auction auction prices closing price Weighted average (for the last one minute before market closing) for settlement price Margin Fixed amount Fixed percent Fixed percent requirement (per contract) (per contract) (per contract) Initial margin to be required for all futures and options products Initial No initial Initial margin Temporary margin margin required exemption to be requirement required given to trading accounts for KTB futures, options on KTB futures, interest rate futures, currency futures & options, and gold futures
When the integration is completed, investors and traders are expected to benefit from simpler and more consistent trading rules while the Korea Exchange is expected to save 2.2 billion won in system maintenance cost a year.
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|Title Annotation:||Economic News Briefing|
|Publication:||Economic Bulletin (Korea)|
|Article Type:||Statistical data|
|Date:||Feb 1, 2007|
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