KOSPI 200M Korean Future Ban ?

[jaygould]

Did the CFTC ban Americans from trading this ? Interactive Brokers is saying there are now regulatory restrictions and I can't place a trade. But I can't find any information about this.

 

[comagnum]

I tried to place an order on the Kospi K200 & K200M, it was denied. I was able to place an order on the KOSDAQ150, this is the South Korean version of the NQ This index is highly correlated to the Kospi200 but has more volatility.


http://www.krx.co.kr/contents/GLB/02/0201/0201040208/20151104_KOSDAQ150Futures_FACTSHEET.pdf

 

[maxinger]

Did the CFTC ban Americans from trading this ? Interactive Brokers is saying there are now regulatory restrictions and I can't place a trade. But I can't find any information about this.

Is it the new trading restriction imposed by S. Korea?

some Countries impose (some) trading restrictions on foreigners
eg India, China

 

[d08]

Interesting flow of events:

https://www.fia.org/marketvoice/articles/commentary-morphing-us-treatment-kospi-200-futures

 

[heispark]

Not sure why U are interested in poorly performing Korean stocks instead of U.S. stocks ...... ??

 

[jaygould]

Not sure why U are interested in poorly performing Korean stocks instead of U.S. stocks ...... ??

Because I want something to trade at 7pm EST. K200M is a good vehicle.

 

[maxinger]

Because I want something to trade at 7pm EST. K200M is a good vehicle.

you can consider trading

Nikkei
Hangseng
China A50
Taiwan Index futures
etc

(if there is no trading restriction)

 

[M.W.]

It's the underlying index of one of the most liquid options contracts in the world.

Not sure why U are interested in poorly performing Korean stocks instead of U.S. stocks ...... ??

 

[eastern_warrior]

The weight of Samsung grew to over 30% of the the index moving the index from broad-based to narrow-based under CFTC rules which means non-qualified persons can no longer trade them. I don't understand why the KRX removed the cap on the max weight of stocks knowing this would happen. If you want more fun, get a load of the first line of the CFTC glossary on qualified person
https://www.cftc.gov/LearnAndProtect/EducationCenter/CFTCGlossary/glossary_qr.html

Qualified Eligible Person (QEP): The definition of QEP is too complex to summarize here; please see Regulation 4.7(a)(2) and (a)(3), 17 CFR 4.7(a)(2) and (a)(3), for the full definitions

 

[M.W.]

The real problem lies with the fact that US residents cannot trade many products such as foreign cash index options, CFDs, and to my knowledge single stock futures? If this was not the case then the change in definition would have never impacted the ability to trade those products.

But US residents are allowed to gamble in Vegas and lose it all, mortgage their equity to the hilt, play around with cryptos and all other sorts of other gambles. Yet Korean index futures and options are apparently too risky to allow US retail traders to engage in. Go figure...