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The KOSPI 200 - the most liquid Korean equity index

Release date: 01 Aug 2013 | Eurex Exchange

The KOSPI 200 - the most liquid Korean equity index

The KOSPI 200 Index is a capitalization-weighted index of 200 Korean stocks which make up 93% of the total market value of the Korea Stock Exchange. The index was developed with a base value of 100 as of January 3, 1990.

The Eurex KOSPI Product – a benchmark for successful cross-border listings

Launched in cooperation with the Korea Exchange (KRX), the Eurex KOSPI Product provides market participants in Korea and all over the world with a night session for the KOSPI 200 options that have been the most liquid contract listed on KRX. The Eurex KOSPI Product is fully fungible with the KOSPI 200 Options traded at KRX, so that the Eurex/KRX Link enables market participants to trade KOSPI 200 Options not only during the Korean daytime, but also during core European and North American trading hours. The Eurex KOSPI Product is structured as a daily expiring futures contract on the KRX KOSPI 200 Options. As the Eurex contracts expire at the end of each trading day, any open positions are transferred to KRX to establish positions in the respective series of the KOSPI 200 Options. Since its launch, the Eurex KOSPI Product has built up a very high notional value of its daily average volume. The number of participants in the nighttime market has continued to grow even after the contract size was revised on June 14, 2012 from 100,000 to now 500,000 Korean Won (KRW) due to the change of KOSPI 200 option’s contract specification at KRX. Traded contract volumes were influenced by the revised contract size on 14 June, 2012. KRX, Eurex and their customers successfully managed this change.

Three years after its launch, the Eurex KOSPI Product achieved a daily average trading value of 43.975 million KRW in H1 2013, equaling 3.9% of the daytime market value of the KOSPI 200 Options and an average daily trading volume of 79910 contracts. The volume is currently 100% in the order book. However, as the Eurex KOSPI Product trades under Eurex Rules with Eurex T7 trading system, block trades are also available for the trading session at Eurex.

Eurex KOSPI Product - total trading value (in KRW billions)