Trading KOSPI option contract just like a futures contract
- Thread starter joesan
- Start date
US Investors to Directly Invest in Futures Market
By Park Hyong-ki
Staff Reporter
The nation's financial regulator said it is seeking approval of the KOSPI 200 futures market as the ``designated contract market'' from the U.S. Commodity Futures Trading Commission (CFTC).
The Financial Supervisory Commission (FSC) said that the endorsement will open the doors wider for American investors to ``directly'' invest in the Korean futures market, which ranked as the world's fifth largest.
The recognition of the KOSPI 200 Index futures as ``stable'' by the U.S. futures and options regulator will greatly ease restrictions on American investors investing in Korean futures contracts.
Currently, American retail or institutional investors are only allowed to ``indirectly'' invest in the KOSPI 200 futures through offshore funds or U.S. futures companies stationed overseas usually in Hong Kong or Singapore.
This is part of the U.S. agency's efforts to protect U.S. investors' investment in global derivatives markets that have not been validated, the FSC noted.
The CFTC certification will grant U.S. investors the right to invest in the KOSPI 200 futures via brokerage companies here or in the U.S. without having to go through third countries.
Kim Joo-hyun, director-general of the FSC's supervision policy bureau said that the U.S. futures regulator cited a possible issuance of a ``No-Action Letter'' to the Korea Exchange, which indicates that it will not restrict futures brokers in the U.S. and allow them to manage investments of futures contracts.
``Such steps of approval will ensure the internationalization and the competitiveness of the futures market where global investors can freely invest,'' said Kim at a press briefing.
Overall, U.S. investors account for 6 percent of total trading on the stock market of the benchmark KOSPI and the tech-heavy KOSDAQ, but they accounted for only 2 percent on the futures market last year, the FSC noted.
The FSC said it will send a confirmation letter to the CFTC by the end of the third quarter to confirm the commission's position of bilateral cooperation in regulations.
To this end, it is moving to sign a memorandum of understanding with the CFTC for the prevention of unfair practices on the futures market.
phk@koreatimes.co.kr
By Park Hyong-ki
Staff Reporter
The nation's financial regulator said it is seeking approval of the KOSPI 200 futures market as the ``designated contract market'' from the U.S. Commodity Futures Trading Commission (CFTC).
The Financial Supervisory Commission (FSC) said that the endorsement will open the doors wider for American investors to ``directly'' invest in the Korean futures market, which ranked as the world's fifth largest.
The recognition of the KOSPI 200 Index futures as ``stable'' by the U.S. futures and options regulator will greatly ease restrictions on American investors investing in Korean futures contracts.
Currently, American retail or institutional investors are only allowed to ``indirectly'' invest in the KOSPI 200 futures through offshore funds or U.S. futures companies stationed overseas usually in Hong Kong or Singapore.
This is part of the U.S. agency's efforts to protect U.S. investors' investment in global derivatives markets that have not been validated, the FSC noted.
The CFTC certification will grant U.S. investors the right to invest in the KOSPI 200 futures via brokerage companies here or in the U.S. without having to go through third countries.
Kim Joo-hyun, director-general of the FSC's supervision policy bureau said that the U.S. futures regulator cited a possible issuance of a ``No-Action Letter'' to the Korea Exchange, which indicates that it will not restrict futures brokers in the U.S. and allow them to manage investments of futures contracts.
``Such steps of approval will ensure the internationalization and the competitiveness of the futures market where global investors can freely invest,'' said Kim at a press briefing.
Overall, U.S. investors account for 6 percent of total trading on the stock market of the benchmark KOSPI and the tech-heavy KOSDAQ, but they accounted for only 2 percent on the futures market last year, the FSC noted.
The FSC said it will send a confirmation letter to the CFTC by the end of the third quarter to confirm the commission's position of bilateral cooperation in regulations.
To this end, it is moving to sign a memorandum of understanding with the CFTC for the prevention of unfair practices on the futures market.
phk@koreatimes.co.kr
Spoke with IB about it:
The margin is around 10mil KRW, which is about $6,900.
RT is around $7.
The tick value is about $17
Average daily volume of Dec contract is about 350K.
Average daily range of Dec contract is about 140 ticks.
Looks like an interesting one to try.
Anyone trading it right now?
The margin is around 10mil KRW, which is about $6,900.
RT is around $7.
The tick value is about $17
Average daily volume of Dec contract is about 350K.
Average daily range of Dec contract is about 140 ticks.
Looks like an interesting one to try.
Anyone trading it right now?
This is great news. I have access to Korean cable. Just imagine, ordinary Korean cable carries not one, but two channels devoted to intense, in-depth technical analysis of the financial markets.
This will be very interesting. I wonder if this will be a case similar to all the hot-shot gamers from the West getting their **s kicked by Korean pro-gamers. Believe it or not, StarCraft has its own dedicated cable channel here. More than one I believe.
Yeah, this will be really interesting. Competing against a nation of gamers, living in one of the most "wired" nations on Earth. They have had internet cafes with broadband access on every corner since at least 1997, which was my first visit here. No more than 1 USD an hour. Imagine my shock when I visited the US and couldn't find a single internet cafe, let alone broadband. I got stuck with 56K as recent as 2006. In DC of all places!
This will be very interesting. I wonder if this will be a case similar to all the hot-shot gamers from the West getting their **s kicked by Korean pro-gamers. Believe it or not, StarCraft has its own dedicated cable channel here. More than one I believe.
Yeah, this will be really interesting. Competing against a nation of gamers, living in one of the most "wired" nations on Earth. They have had internet cafes with broadband access on every corner since at least 1997, which was my first visit here. No more than 1 USD an hour. Imagine my shock when I visited the US and couldn't find a single internet cafe, let alone broadband. I got stuck with 56K as recent as 2006. In DC of all places!