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|
 Trading
Hours for Derivatives Products |
| Product |
Hours |
| KOSPI 200
Futures and Options |
9:00AM
- 2:50PM |
| KOSDAQ
50 Futures and Options |
9:00AM
- 3:15PM |
| KTB
Futures Options, CD Interest Rate Futures,
MSB Futures |
9:00AM
- 3:00PM |
| USD
Futures Options, Gold Futures |
9:30AM
- 4:00PM |
Note: As of March 2005 |
| Order
Transaction |
Only limit orders are permitted. |
|
The maximum size for orders must be less than
5,000 contracts of the net open interest,
with exception given to arbitrage traders
or hedgers. |
|
Orders are processed via individual auctions
through an automated trading system. |
|
Priority is given to price over time. |
|
Non-stop trading is the norm until closing,
even on a contract's last trading day. |
|
In cases where the most active futures contract
continues to go up or down five percent or
more from the base price for one minute, all
program trading orders in the cash market
are delayed for five minutes. This is to prevent
accelerated stock market volatility caused
by program trading. |
|
If a member securities company wishes to place
orders for program trading in the last ten
minutes of the expiration day of a futures
or an options contract, the member must report
the details of such to KSE fifteen minutes
prior to market close. |
|
Apart from the cases mentioned above, single
price allocation period (aggregation period)
is applied to the following : |
，
Opening of morning session (8:00AM-9:00AM)
， Re-opening after circuit breakers (ten minutes)
， Re-opening after side-cars (five minutes) |
| KRX
Member's Margin |
|
The portfolio risk-based margin system is
used to determine margin requirements for
futures and options trading. |
|
The margin for any given account is therefore
based on the likelihood or risk that the portfolio
will experience adverse movements in the market.
|
|
Three types of margin are available for members
: |
， Options premium margin is the amount required
to offset all option positions at current
market prices.
， Spread margin is the spread quantity multiplied
by the spread rate.
， Risk margin is the maximum probable loss
of the futures and options portfolio.
|
|
Members are required to deposit margins, either
cash or substitute securities, with KRX before
12:00PM on the day following the day of contract.
|
| Customer's
Margin and Settlement |
|
A customer's margin consists of the option
premium margin and the risk margin. |
|
When placing orders for futures and options
trading, initial margins must be deposited
with the securities company: |
，
Bids or offers of futures: minimum 15 percent
of the contract value
(a minimum 5 percent of which must
be in cash);
， Bids of options: cash equivalent to or greater
than the contract value;
， Offers of options: cash or substitute securities
equivalent to or greater than
the maximum probable loss.
|
|
Investors are required to maintain a minimum
margin. |
， If the balance
in the margin account drops below the maintenance
margin, additional
deposits are required by 12:00PM the
next trading day. The maintenance margin is
calculated
by the portfolio-risk-based margin
system with the margin interval being 10 percent
of the KOSPI 200.
， If, on the other hand, the investor's account
has excess margin, the surplus may be withdrawn
so long as the required minimum margin
is still maintained, to guarantee the performance
of the investor's positions.
|
|
Futures contracts are marked-to-market daily
to limit default risks. The deadline for daily
settlement is 12:00PM the following trading
day. |
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